France Taps 10 Million Barrels of Diesel Reserves as G7 Release Offers Less Relief Than Expected

France will release 10 million barrels of diesel from its strategic reserves to combat surging fuel prices, Prime Minister Sébastien Lecornu announced Wednesday evening. The move follows a G7 agreement, made under pressure from President Trump, to make 100 million barrels of crude and diesel available globally. France and Germany hold up to 400 days of diesel in storage.

The relief from the G7 pledge proved narrower than markets had anticipated. EU countries, backed by the European Commission, agreed they would release fresh stocks only after an IEA assessment, and the Commission confirmed that any EU release would fall within the 400 million barrel IEA action agreed in March, not on top of it. Diesel prices jumped after the IEA clarified that no additional fuel beyond that March commitment would be forthcoming, with the 100 million barrels promised by the G7 drawn from that earlier pool.

The oil market backdrop is being reshaped by severe shipping disruptions. The cost of hiring a very large crude carrier to move US oil to Asia hit $77 million, against a 2025 average of $9.2 million, adding an implied delivery cost of roughly $38.50 per barrel for a 2 million barrel cargo. West African crude fell to its steepest discount since 2011, with Angolan Hungo loading next month trading at $19.60 per barrel below Dated Brent, as recovering Persian Gulf shipments redirected Asian demand away from Atlantic Basin suppliers. Trading house Trafigura moved to lock in capacity, purchasing seven tankers from SFL Corp, comprising four LR2 product tankers and three suezmax vessels, for delivery over the next six months.

Oil futures settled lower on Wednesday, with WTI down 1.30 percent to $88.28 per barrel and Brent off 0.38 percent to $100.20 per barrel, as the prospect of accelerated reserve releases weighed on prices despite ongoing Middle East supply concerns stemming from Iran's stepped-up attacks on tankers in the Strait of Hormuz.