IEA AGREES TO RELEASE OVER 20 MILLION BARRELS OF DIESEL

The International Energy Agency said its members have agreed to release more than 20 million barrels of diesel "as soon as possible" in response to rising global fuel prices, according to a statement issued by the agency on Thursday. The IEA, based in Paris and made up of more than 30 member states including the United States and allies in Europe and Asia, did not set out a timeline for the release in its statement. The volume is equivalent to less than one day of global diesel demand, or slightly more than five days of consumption in the United States, the agency said. Separately, Bloomberg reported that IEA members had agreed to complete the release of 100 million barrels of oil still outstanding from an intervention announced in March aimed at calming global markets.

The announcement follows comments from US President Donald Trump earlier in October, in which he said Europe had agreed to deploy what he described as a "massive amount" of its diesel stocks. The Group of Seven nations, led by France, said on 2 October that they would release substantial diesel stocks over a 20-day period, a timeline that would imply roughly 1 million barrels released each day if applied to the IEA's commitment. The IEA was established in 1974 following the Arab oil embargo and is tasked with maintaining energy security by releasing stockpiles during crises, including conflicts in the Middle East and Eastern Europe. According to AAA, the average US retail diesel price stood at $6.32 a gallon on Thursday, more than 70% higher than the same period a year earlier.

The Trump administration has pressed European governments to release diesel inventories as prices in the US reached record levels in September, with the midterm elections due on 3 November placing the administration under political pressure to address fuel costs. Diesel futures were trading more than 1% lower on Thursday at $4.86, according to CNBC. Analysts cited by CNBC said the IEA's diesel release does not address underlying refining capacity constraints. The IEA has not specified when the release will begin or how it will be distributed among member states.