Europe Weighs 50 Million Barrel Diesel Stock Release Under US Pressure

European Union governments discussed a French proposal on Friday to release 50 million barrels of diesel from emergency stocks, while International Energy Agency members would free another 50 million barrels of crude. Washington has reportedly asked large European countries, including France and Germany, to release 100 million barrels of diesel within 20 days. Part of the European volume would be released in that window. Officials also floated making any deal conditional on a US pledge not to impose a unilateral diesel export ban.

Why the US Is Pushing for a Release

President Donald Trump is weighing a ban on US diesel exports to lower domestic fuel prices before the Nov. 3 midterms. Global supply has been hit by the Iran war, a Russian export ban and suspended Chinese fuel exports for October. France holds the G7 presidency, and President Emmanuel Macron was set to chair a video call with G7 leaders on energy.

Diesel Prices and Emergency Reserves

Oil fell over 2% and European diesel futures dropped 4.5% to $1,384.50 a metric ton. Refining margins eased to $73.30 a barrel after a record near $95 last week. The proposed release equals about 17% of EU emergency diesel stocks and 3% of annual consumption.