What happened
The G7 nations have agreed to release 100 million barrels of diesel and crude from their stockpiles, according to French President Emmanuel Macron. This move is expected to have a minimal impact on US prices, with experts predicting a change of at most a few pennies. The US produces the vast majority of the diesel it consumes each year, which limits the effect of the release on US prices.
The release is intended to help lower the price of oil and reduce European diesel prices, which are currently near an equivalent of $8 a gallon. However, the total release is equivalent to just one day's worth of global oil demand, and the impact on US prices is expected to be small.
The US is also considering other measures to lower diesel prices, including an executive order that could allow the widespread use of red-dyed diesel. This type of diesel is currently banned from use on public roads, but it could help reduce prices if allowed.
The disruption to global energy supplies caused by the war in Iran has led to higher prices, and experts say that a more permanent solution would be an end to the war. The US has been affected by the disruption, with diesel prices soaring above $6 a gallon, and the release of diesel from stockpiles is seen as a temporary fix.
