Diesel is expensive and US President Trump is facing a problem shortly before the midterm elections in November. According to US Treasury Secretary Bessent, Europe should react and release fuel reserves. The federal government calls for caution.
After the US demand to release diesel reserves due to high fuel prices, the federal government has called for a prudent response. “It is now important not to unsettle the markets any further,” said deputy government spokesman Sebastian Hille in Berlin. At the same time, he emphasized that the federal government “continues to see the USA as a reliable partner, also with regard to fuel deliveries.”
US Treasury Secretary Scott Bessent called on the Europeans on Thursday to "immediately" release their strategic diesel reserves in order to reduce high prices. The means of pressure is apparently a possible export ban on diesel from the United States, which US President Donald Trump had previously publicly considered.
“Security of supply is our top priority,” said Hille. “We call on everyone involved to act prudently.” The reason for the high fuel prices lies “first and foremost in the situation in the Middle East and the associated shortage of supply”.
In principle, the release of fuel reserves takes place within the framework of the International Energy Agency (IEA). This happens “on a voluntary and coordinated basis”. At the moment, Germany is “not aware of any new requirements from the International Energy Agency,” emphasized Hille. The last time such a step was taken was in the spring.
EU: USA would have to forego unilateral export ban
The EU declared its fundamental willingness to release strategic oil reserves. "The European Union is ready for joint action within the framework of the International Energy Agency (IEA)," said a spokeswoman for the EU Commission. The so-called Energy Union Working Group met for an extraordinary meeting in the morning to discuss a French proposal to release additional diesel reserves. The initiative would require EU states to release 50 million barrels of diesel, a person familiar with the matter told Reuters. In addition, the members of the International Energy Agency (IEA) are to bring 50 million barrels of crude oil onto the market.
However, according to the insider, an agreement on the release of diesel stocks should be tied to one condition: the USA would have to undertake to forego a unilateral export ban on diesel.
The situation on the diesel market is also an issue at the G7 level. French President Emmanuel Macron called on the G7 countries to take concerted action against high energy prices. The group of states must “act in concert and without export restrictions” to reduce fuel prices, the presidential office in Paris said. Macron has already spoken on the phone with US President Donald Trump and Canadian Prime Minister Mark Carney.
Macron will host a video conference of the G7 countries at 2:30 p.m., the Élysée Palace announced. In addition to France, the USA and Canada, the group included Germany, Italy, Great Britain and Japan. Chancellor Friedrich Merz is expected to take part in the video conference.
Global diesel stocks have fallen sharply in connection with Trump's war against Iran. At the same time, Russian President Vladimir Putin imposed an export ban following Ukrainian attacks on Russian refineries. Russia said it would consider partially lifting its diesel export ban if overproduction occurs.
