Europe weighs new diesel stocks release after US pressure
USO•EU governments discussed a French proposal to release 50 million barrels of diesel, alongside a 50-million-barrel crude release by International Energy Agency members, after US pressure to draw down European diesel stocks.
1. French proposal discussed
EU governments discussed the French proposal on Friday. It calls for European countries to release 50 million barrels of diesel and IEA members to release 50 million barrels of crude oil, two sources familiar with the discussion said.
2. US pressure on Europe
The US had demanded that large European countries, including France and Germany, release 100 million barrels of diesel within 20 days, one source said. President Donald Trump has said he is considering a diesel export ban to help bring down US fuel prices ahead of the November 3 midterm elections.
3. Supply and next steps
Global diesel supply has been hit by the Iran war, a Russian export ban after Ukrainian damage to refineries, and Chinese refiners suspending October fuel exports. One source said EU countries discussed making any further release agreement conditional on a US commitment to avoid a unilateral diesel export ban. G7 leaders may hold a call on Friday afternoon.
