Diesel prices fell sharply after the Group of Seven (G7) signaled it would release emergency reserves to ease some of the pressure on consumers from surging energy costs.

European diesel prices tumbled more than 8% at one point before paring losses, while US diesel futures dropped as much as 5.6%. French President Emmanuel Macron said earlier that the G7 would release up to 100 million barrels of emergency oil and diesel reserves. The Trump administration is pursuing multiple measures to push fuel prices lower, and the White House has urged the European Union to release its inventories, aiming to prevent the United States from being forced to impose a diesel export ban.

Even so, analysts and traders said the latest reserve release may not be enough to offset ongoing supply losses. Scott Shelton, an energy specialist at TP ICAP Group, said: "I think this weakens the logic for further diesel price increases, but the volume of diesel released is not large enough to have an overwhelming impact on the market."

Oil prices fluctuated this week, with improving Middle East oil supply conditions on one hand and no clear progress between the United States and Iran toward a lasting peace agreement on the other. Making the supply situation more difficult, Chinese exporters canceled some refined fuel cargoes originally scheduled for October export to prioritize domestic supply.

West Texas Intermediate (WTI) for November delivery fell 1.9% to settle at $91.11 per barrel. US diesel futures fell 3% to settle at $4.50 per gallon. Brent for December delivery fell 0.1% to settle at $102.25 per barrel.