European Union discusses launching emergency diesel reserves under US pressure
The plan, which came to the agenda with the proposal of France, includes the use of emergency stocks after the US threat of a diesel export ban.
Quick Look
- EU countries are negotiating to put emergency diesel reserves on the market, at the suggestion of France, following the threat of a US diesel export ban.
- The plan includes the release of 100 million barrels of diesel and crude oil.
AI-generated summary
Why It Matters
Worldwide diesel supply has shrunk due to the Iran war and Russia's export ban. IEA had previously released 400 million barrels of strategic oil reserves to the market in March.
European Union countries discussed the proposal from France to release emergency diesel reserves following the pressure initiated by the USA and aimed at curbing rising fuel prices.
Two sources familiar with the matter told the Reuters news agency that the negotiations were carried out in an intergovernmental phone call on Friday.
According to the proposal prepared by France, it is envisaged that European countries will release 50 million barrels of diesel fuel and members of the International Energy Agency (IEA) will release 50 million barrels of crude oil from reserves.
The French Ministry of Economy and Finance and the Ministry of Energy have not yet made a statement on the issue.
USA REQUESTED 100 MILLION BARRELS FROM EUROPE IN 20 DAYS
According to three sources familiar with the negotiations, the Donald Trump administration told Germany and France yesterday that they should make emergency diesel stocks available, otherwise the United States could impose a ban on diesel exports.
A source citing Friday's talks said Washington asked major European countries, including France and Germany, to release 100 million barrels of diesel within a 20-day period.
US President Donald Trump stated that he was considering the possibility of an export ban in order to reduce fuel prices in the country before the November 3 midterm elections.
DIESEL SUPPLY IS CONTRACTING ACROSS THE WORLD
Worldwide diesel supply has shrunk due to the Iran war and the export ban imposed by Russia after Ukraine damaged several Russian refineries.
Sources reported that Chinese refineries also suspended fuel exports for October in order to strengthen domestic market stocks.
At today's meeting, EU countries considered that a new stockpile release agreement should include Washington's commitment to avoid a unilateral diesel export ban.
It is stated that the leaders of the G7 countries, whose term presidency is held by France, may hold a joint phone call on Friday afternoon to discuss the next steps.
The 32-member IEA decided to release 400 million barrels of strategic oil reserves to the market in a coordinated manner in March, in the face of supply disruptions caused by the Iran war, and this step was recorded as the largest reserve sale in history.
What to Watch
AI outlook — possibilities, not facts
G7 leaders announce a joint decision on emergency reserves.
Likely · Within days
Open Questions
- Will the US make its export ban threat official?
- Will EU countries accept the 100 million barrel offer?
