Member states of the International Energy Agency, including Canada, will release 20 million barrels of diesel “as soon as possible” into the global market to ease the pressure on fuel costs, the agency said in a statement.
Crude oil exports through the Strait of Hormuz are slowly recovering after more than half a year of conflict between the United States and Iran but oil prices still face volatility, with the rising cost diesel at the centre of the turbulence.
In March, IEA members agreed to release more than 400 million barrels of oil from their emergency reserves to calm oil markets. Canada agreed to release a total of 23.6 million barrels – the third highest volume released by an individual member.
On Thursday, the IEA confirmed that over 330 million barrels of emergency reserve oil had been released since March, with another 100 million to go. Of the remaining 100 million barrels, 20 million will be released “as soon as possible,” the agency said.
Members of the IEA have “agreed to accelerate” the collective release of “over 20 million barrels of diesel as soon as possible,” the IEA governing board said in a statement Thursday.
“Some IEA Members have released higher volumes than initially pledged in March while other Members intend to do so, making the total amount of stocks to be released exceed the original total of 400 million barrels,” the statement said.
Spotlight on diesel
The war in the Middle East has created “the largest supply disruption in the history of the global oil market,” IEA said in its oil market report for October.
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“Diesel and jet fuel markets look to be particularly vulnerable to an extended loss of Middle East production and exports, given limited flexibility elsewhere to increase output,” the report said.
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IEA is also encouraging members with oil production and refining capacities to boost supply of crude and refined products, “particularly diesel.”
Diesel is “setting the terms for the entire energy market,” a report by market monitor Oil Market Daily said on Friday.
“Wholesale diesel hit record highs of around $220 a barrel in Europe and the U.S. in September,” it said, citing IEA data and adding that global diesel exports were 700,000 barrels per day lower than a year earlier.
While most Canadians don’t buy diesel at the pumps the way that they do regular gasoline, consumers still pay indirectly for higher diesel costs since the fuel is used to power trucking, agriculture, construction, mining, rail, marine transport and some industrial activity.
Analysis by TD Bank economist Marc Ercolao said oil markets are “still far from functioning normally.”
While more barrels of crude oil have started to move through the Middle East, they are moving through “more complex and less transparent routes.”
This has meant higher freight costs, as well as higher cost of insurance and other logistics for the oil market.
“Diesel is currently the tightest part of the barrel,” the report says.
While the move by the G7 to release additional barrels of oil can provide “some near-term relief” for oil markets, it is “not enough to reset the market,” the TD analysis said.
One commenter said if you increase the supply of a commodity the price will automatically be reduced. They did so in response to my comment that this release will make no MEANINGFUL change. Many experts in the area have also said there will be no meaningful change in prices. There may be a 3 or so day puny dip, that’s all. Initially when the announcement was made prices actually increased, because investors thought more would be released. The oil market right now has underlying issues so one should be cautious in assuming that it is a market like any other.
Thank you trump and putin for making this happen. If we could just get the little weasel salinski to stop hitting Russian refineries
And hey, the Youth convicted of terrorism, should be sentenced as an adult.
Amazing how the story of ‘oil is now flowing trough the Strait of Hormuz’ when it is still blockaded by Iran. And Iran oil is blockaded by Trump.
Oil availability is recovering by increases in oil flow by OPEC and other suppliers.
Putting the numbers into perspective, 20 million barrels sounds like a lot. It is less than 1/10 of just what the US uses on a daily basis. – If Canada releases some of it’s reserve, it will not be to the US, it will be to Canada.
Anonymous @12:24pm.
A smug p.o.s. (yourself) trying to look down his nose at others. Perhaps you have a low IQ and the need to attack others is alway there ?
Ben, you are a complete moron and Gen Z waste of space.
Your entire generation is brainwashed and went into debt for educations that seemingly taught them nothing.
If you increase the amount of a commodity, the price of said commodity comes down.
Of course, insufferable Ben hates what he doesn’t understand because that’s what ignorance breeds.
Ben thinks food makes it to his table on sunshine and lollipops.
Ben, diesel trucks and other diesel powered transports are not likely to be EV, ones that are now use… Wait for it… Diesel generators to recharge their batteries.
It is a repulsive level of ignorance and arrogance that converts bus fleets to EV.
Gen Z is Generation Ignorant of Everything.
@ Sad .how is America losing the war. Should they sit on there hands like canada always does.
Liberals are dumb little $h1ts… Listen to the pusilanemous pissant below… Sad indeed. The stain has probably never fought a war or been a citizen of a country that has won a war…
They just pollute the air with low level EQ and IQ scribblings in a search for meaning they will never find.
“sad
October 16, 2026 at 12:08 pm
It’s a band aid. Time for moron Trumpty to admit that the loser US military has lost yet another WAR”
It’s a band aid. Time for moron Trumpty to admit that the loser US military has lost yet another war
@benny. Shut up. Do not know what you are talking about
Not going to make a meaningful difference in prices. Trump and the US are to blame for high oil prices due to the Iran war.