EU countries discuss French proposal to release diesel stocks amid US pressure
EU governments discussed a French proposal to release diesel and crude oil reserves as Washington pressed European countries to help lower fuel prices.
Paris, France. European Union countries discussed a French proposal on Friday to release diesel stocks in response to US pressure to help curb surging fuel prices, two sources familiar with the discussions told Reuters.
Proposed release of fuel reserves
During a call on Friday, EU governments discussed a proposal under which European countries would release 50 million barrels of diesel and International Energy Agency members would release 50 million barrels of crude oil, the sources said.
France’s finance and energy ministry did not immediately respond to a request for comment.
US demands and potential export ban
Reuters reported on Thursday that the Trump administration had told Germany and France to draw down emergency diesel inventories or face a potential US diesel export ban, according to three people close to the discussions.
The US demanded that large European countries, including France and Germany, release 100 million barrels of diesel within a 20-day window, one source told Reuters on Friday.
US President Donald Trump has said he is considering an export ban to help reduce US fuel prices ahead of the November 3 midterm elections.
During Friday’s call, EU countries discussed the need for any agreement on further diesel stock releases to include a US commitment not to impose a unilateral diesel export ban, one of the sources said.
Supply disruptions and international coordination
Global diesel supply has been affected by the Iran war and a Russian export ban imposed after Ukraine damaged many of Russia’s refineries. Chinese refiners have also suspended October fuel exports to bolster domestic stocks, sources said.
G7 leaders may hold a call on Friday afternoon to discuss their next steps. France currently holds the G7 presidency.
The 32-member IEA agreed in March to coordinate the release of 400 million barrels of strategic oil reserves in response to supply disruptions caused by the Iran war. It was the largest such release in history.
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