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Ahead of the International Energy Agency's (IEA) governing board meeting this Thursday, its executive director Fatih Birol has written to member governments calling for further action as global diesel markets face tight supplies.
Birol suggested that members that have not yet released all the oil they pledged in March, when the IEA agreed to release 400 million barrels, should speed up their remaining releases, prioritising diesel. Some countries have already released more than they initially pledged.
All members were also asked to assess whether additional diesel releases are necessary and, if so, explain how much they could release and when.
The governing board will review these efforts at its meeting on 15 October.
“As we did in March, I believe we can once again demonstrate the IEA’s capacity to act together in support of energy security and economic stability,” Birol said in the statement published on Sunday.
The G7 previously announced plans to release up to 100 million barrels of oil to curb soaring energy prices. However, an internal document seen by Euronews showed that these volumes would fulfil outstanding March commitments, rather than add to the original 400-million-barrel pledge.
"Of its 400 million barrels, 326 million have been released. Because some members over-delivered, the 100 million barrels in the G7 statement can be covered within the existing action if everyone fulfils their commitments," the document states.
Diesel prices have been soaring amid global fuel shortages. The Iran war disrupted crude oil shipments through the Strait of Hormuz, while damage to refineries has also restricted fuel supplies.
According to Kpler, crude oil and condensate exports from the Middle East Gulf, excluding Iran, returned to pre-war levels in September. However, much of that oil now travels through alternative routes or is transferred between tankers offshore.
The IEA statement comes two days after US President Donald Trump announced a diesel supply deal with Russia. Washington temporarily eased sanctions on Russian diesel, allowing its sale and delivery, including imports into the US, until 7 April 2027.
Moscow said it was ready to supply oil and petroleum products to the US and global markets following a telephone conversation between Trump and Russian President Vladimir Putin.
"I am convinced this will have a positive impact on the entire global economy," Putin said, according to the Russian statement.
European sanctions remain in place, but additional Russian supply to the global market could help lower diesel prices. The impact will depend on how much fuel Russia can deliver, with damage to its refineries limiting production.
Brent crude, the international oil benchmark, remained above $100 a barrel on Monday morning. European diesel futures fell about 3% to around $1,437 a tonne.