European Union countries are considering a French proposal to release strategic diesel reserves as fuel prices rise and the United States pressures European governments to increase supplies.
The proposal, discussed by EU member states on Friday, calls for European countries to release about 50 million barrels of diesel, while International Energy Agency (IEA) members would release another 50 million barrels of crude oil, according to sources familiar with the discussions.
The talks follow pressure from the administration of US President Donald Trump on France and Germany to draw down emergency diesel inventories. Washington has warned that it could restrict US diesel exports if European countries fail to take action, as the global market faces tighter supplies and rising prices.
European governments have indicated that any agreement to release additional stocks should include a firm US commitment not to impose a unilateral diesel export ban.
The discussions come as several supply disruptions have tightened the global fuel market. Russia has restricted diesel exports following refinery damage linked to Ukrainian attacks, while Chinese refiners have suspended oil-product exports for October as Beijing seeks to preserve domestic supplies.
The US administration has been seeking additional diesel supplies as domestic fuel prices rise ahead of the November midterm elections. US Energy Secretary Chris Wright said on Thursday that he was confident European countries would release emergency stocks, citing the need to address supply pressures ahead of the harvest and winter heating seasons.
The latest discussions also involve the G7, with France currently holding the group’s presidency. G7 leaders were expected to discuss possible next steps on Friday.
The proposed European release would come months after the IEA coordinated its largest-ever emergency oil stock release. In March, the agency’s 32 member countries agreed to make 400 million barrels of oil available to the market following major supply disruptions linked to the conflict in the Middle East.
The IEA said the March release included both crude oil and refined products, with European contributions largely taking the form of refined oil products.
European governments are now weighing whether another coordinated release can help ease diesel shortages and prices while securing assurances from Washington over future US exports.
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