Oil Prices Fall Sharply Amid Reports of Potential EU Reserve Release

Oil prices were sharply lower on Friday morning, extending losses from earlier in the session, following reports of a potential European move to release diesel and crude stocks to ease a global supply shortage

International benchmark Brent crude futures with December expiry traded 2.5% lower at $99.51 per barrel, while U.S. West Texas Intermediate futures with November expiry fell 3.6% to $89.47.

It comes shortly after Reuters reported that European Union member states were discussing a French proposal to release additional diesel reserves following pressure from the Trump administration.

The report, which cited a single unnamed source familiar with details of the discussion, said France had proposed that EU nations release 50 million barrels of diesel and International Energy Agency members release 50 million barrels of crude oil.

CNBC could not independently verify the report. A spokesperson for the French government and the IEA were not immediately available to comment.

The EU is holding crisis talks on Friday to discuss a coordinated response to soaring diesel prices after U.S. Treasury Secretary Scott Bessent called on European countries to urgently release some of the continent's reserves.

In a post on social media, Bessent said Thursday that America's European partners "should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions."

He added: "American farmers, truckers, and businesses should not be left carrying the burden of a global diesel shortage."