Oil prices moved in different directions on Friday after the Group of Seven (G7) agreed to release up to 100 million barrels of crude oil and fuel from emergency reserves. Governments are taking the step to increase fuel availability and reduce pressure on global energy markets. Brent crude, the international benchmark, rose around 9 cents to $102.40 a barrel. Meanwhile, US West Texas Intermediate (WTI) futures fell $1.47 to $91.48, according to market data cited by CNBC. The G7 said the emergency reserves would be released over four months through the International Energy Agency (IEA). A “substantial” amount of diesel will be released within the first 20 days. The move is aimed at increasing near-term fuel supplies and preventing further price increases.

G7 Approves Emergency Oil Reserve Release

The G7 decision is designed to provide additional crude and fuel to global markets at a time of heightened supply uncertainty. Up to 100 million barrels will be released from emergency reserves. The IEA will coordinate the process over a four-month period. Diesel will receive priority during the initial phase because refined fuel markets are facing immediate supply pressure.

Oil Prices Remain Above Pre-War Levels

The reserve release comes as global oil markets remain highly sensitive to disruptions linked to the war involving Iran. Brent crude has remained around $100 a barrel, well above its pre-war level. Traders continue to monitor developments in the Middle East for signs of further supply disruptions. The ongoing uncertainty has made oil prices particularly vulnerable to changes in regional supply flows.

Strait of Hormuz Remains Key Oil Market Risk

The Strait of Hormuz continues to be one of the biggest concerns for the global energy market. The strategic waterway is a major route for international crude oil and refined fuel shipments. Any disruption could affect supplies and push prices higher. Oil traders are therefore closely watching shipping activity through the strait and the wider security situation in the region.

US Pushes Europe to Release Diesel Stocks

The United States has also been encouraging European countries to release diesel from their emergency stocks as fuel prices rise. US Treasury Secretary Scott Bessent said American farmers, truckers and businesses should not be left to bear the impact of a global diesel shortage. The push highlights the growing concern over refined fuel availability, particularly diesel.

G7 Seeks to Prevent Energy Export Restrictions

The G7 agreement also includes a commitment from members to avoid energy export restrictions among G7 countries. The pledge is intended to prevent additional pressure on global fuel markets. Restrictions on energy shipments could further reduce available supplies and push prices higher. Keeping fuel flowing between major economies is therefore an important part of the G7's response.

Emergency Oil Release May Offer Short-Term Relief

The additional supplies could provide some immediate relief, especially for the diesel market. However, the impact on crude prices may be limited if underlying supply disruptions continue. The 100 million barrels represent roughly one day of global oil demand. Since the release will be spread over four months, its impact on the overall crude market could remain modest.

Diesel Supplies Get Early Priority

The G7 has chosen to prioritise diesel during the first 20 days of the emergency release. The strategy reflects the immediate pressure in refined fuel markets. Increasing diesel availability quickly could help ease some of the supply concerns facing consumers and businesses. The effectiveness of the move will depend on how rapidly the reserves reach the market.

IEA Has Released Larger Emergency Stocks Before

The IEA has previously coordinated a much larger emergency stock release following the escalation of the Iran conflict. The latest decision shows that governments continue to remain concerned about the resilience of global energy supplies. The coordinated approach also indicates that major economies are preparing for the possibility of prolonged market disruptions.

Middle East Oil Flows Remain Critical

For oil traders, the biggest question is whether crude and refined fuel shipments through the Middle East can move closer to normal levels. If regional supply routes recover, the additional emergency barrels could help stabilise the market. However, renewed disruptions could quickly cancel out the benefit of the reserve release.

Strait of Hormuz Disruption Could Lift Prices

Any fresh disruption around the Strait of Hormuz could have an immediate impact on global oil markets.  Because the waterway handles significant international energy shipments, even a temporary disruption could reduce available supplies and increase price volatility. The situation will therefore remain a major focus for traders and governments.

G7 Calls for Higher Refinery Utilisation

The G7 has also called for measures to increase refinery utilisation. It wants members to coordinate refinery maintenance schedules to avoid unnecessary losses in refining capacity. Higher refinery utilisation could help increase the production of diesel and other refined fuels during the current period of tight supply.

Oil Market Outlook Remains Uncertain

Oil prices are likely to remain sensitive to developments in Middle Eastern supply routes, refinery capacity and the pace of emergency reserve releases. The G7's decision can provide some short-term support to global fuel supplies. However, lasting price stability will depend largely on whether crude and refined fuel flows through the Middle East return to normal. Any new disruption could quickly put renewed pressure on oil prices.