Brent crude slipped below $78 a barrel in early Asian trading on Sunday, extending losses after the Group of Seven confirmed a coordinated release of 100 million barrels of oil and diesel fuel to curb elevated energy prices. West Texas Intermediate traded near $74.

The G7 announced the release on Friday, with the US Department of Energy and the International Energy Agency coordinating drawdowns from strategic reserves across member states. The intervention followed weeks of upward pressure on prices driven by supply disruptions and war-risk premiums in the Red Sea and Gulf regions.

Traders had begun pricing in the extra supply before the weekend, and futures markets reflected expectations of softer near-term prices. Diesel cracks, which had widened sharply through late September, narrowed as the inclusion of distillate stocks in the release reassured refiners and commercial buyers of adequate winter supply.

The move drew a measured response from OPEC+ producers, who have resisted rapid output increases. Analysts at Goldman Sachs and ING warned that the price relief could prove temporary unless underlying supply disruptions ease, noting that strategic releases historically deliver only short-lived downward pressure.

A spokesperson for the International Energy Agency said the coordinated action was designed to ensure market stability through the Northern Hemisphere winter, adding that member states stood ready to take further measures if conditions deteriorated.