Europe weighs new diesel stocks release after US pressure, sources say
USO•EU countries discussed France’s proposal to release 50 million barrels of diesel, alongside a 50-million-barrel crude release by International Energy Agency members. The US has sought a 100-million-barrel diesel release from major European countries, while EU states discussed making any release conditional on a US commitment not to ban diesel exports.
1. French proposal discussed
EU countries discussed a French proposal to release 50 million barrels of diesel, while International Energy Agency members would release the same amount of crude oil. The US had demanded that major European countries, including France and Germany, release 100 million barrels of diesel within 20 days, one source said.
2. Possible conditions
EU countries discussed making any diesel-stock release conditional on a US commitment not to impose a unilateral diesel export ban, one source said. President Donald Trump is considering a potential ban on US diesel exports to lower domestic fuel prices ahead of the November 3 midterm elections.
3. Reserve context
The proposed diesel release would equal about 17% of the EU’s emergency diesel and gasoil stocks and about 3% of its annual consumption. The 32-member IEA agreed in March to release 400 million barrels of strategic oil reserves in response to the Iran war; its executive director said members had released about two-thirds of that volume.
