The International Energy Agency has agreed to speed up the release of emergency diesel stockpiles, with over 20 million barrels to be released as soon as possible.
What happened
The release is part of an emergency plan adopted in March, following the Strait of Hormuz crisis. The IEA's governing board agreed to release the remaining pledged amount, which includes the diesel, to help meet global demand.
The released diesel would cover less than a day of global demand or about five days of US demand, according to calculations. The move comes after President Donald Trump pressured US allies to release their emergency reserves, with the White House sharing a post on the matter on social media.
The IEA's member countries, including the US, Canada, and several European nations, have released around 330 million barrels so far, with some members exceeding their pledged amounts. The latest release aims to complete the initial 400 million barrel target set in March.
The current diesel price in the US averages $6.32 per gallon, down from the record high set in September. The IEA's decision is seen as a response to the ongoing energy crisis, with the US previously warning some allies that it could restrict diesel exports if they did not open their emergency reserves.
