US tells France and Germany to release diesel stocks or face potential export ban, sources say
USO•The Trump administration has warned France and Germany to release emergency diesel inventories or face a potential US export ban. One source said the US asked the EU to release 120 million barrels over six months.
1. US pressure on Europe
The Trump administration has told Germany and France to draw down emergency diesel inventories to help ease soaring global fuel prices, or face a potential US diesel export ban. A US official said Europe has an interest in working with the United States to boost refined-product supplies and lower consumer costs.
2. EU discusses reserves
The EU’s energy taskforce will hold a call Friday morning to discuss the situation, a European Commission spokesperson said. The Commission, Germany, France, Italy, Britain and Ireland also discussed the possible need to release diesel stocks on Thursday. One source said the US asked the EU to release 120 million barrels over the next six months.
3. Supply pressures
The EU faces a choice between lowering fuel prices at home and keeping stocks for a possible worsening of the crisis if Trump and Iran do not reach a peace deal. The article cites disrupted Middle East supplies, Russia’s diesel export ban through October and China’s suspension of October fuel exports. French President Emmanuel Macron plans to convene a G7 leaders’ video conference on fuel prices and refined-product availability, including possible reserve releases coordinated with the International Energy Agency.
