G7 fuel release ‘not going to make a major difference’

Speaking to Al Jazeera, Atkinson said the 100 million barrels to be released over four months must be weighed against European demand of about 6 million barrels a day. “Spread over four months, it’s not going to make a major difference,” he said.

He said the release is split between crude oil and refined products, and that the crude portion is unlikely to move markets. “Crude oil releases come with various factors. For example, what is the quality of the crude? Is it the kind of crude that refiners want?” he said.

The main focus is diesel, where he said markets are under “great stress” worldwide. He noted that pump prices for European consumers are typically far higher than in the US, partly because of high taxation. The diesel release “will come as some relief to European consumers, but it’s unlikely to make a significant amount of difference,” he said.

Atkinson said member governments deserve credit, as the move followed a US threat to curb diesel exports. The G7 action “has kept the response to the crisis international and global,” he said, rather than Europe and the US acting alone.

Source: AL Jazeera