US Presses France and Germany to Release Diesel Stocks as Fuel Prices Surge

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he Trump administration has urged France and Germany to release emergency diesel reserves to help ease soaring global fuel prices, warning that Washington could impose a ban on US diesel exports if European countries fail to act, according to three people familiar with the discussions.

The pressure marks an escalation in Washington’s efforts to bring down record US diesel prices as President Donald Trump considers measures to increase domestic fuel supplies ahead of November’s midterm elections.

For European governments, however, releasing additional emergency stocks presents a difficult choice. The European Union must weigh the immediate need to reduce fuel prices against the possibility of a worsening supply crisis if the conflict involving Iran continues and global energy markets remain disrupted.

The European Commission’s energy taskforce, which includes the Commission and representatives of all 27 EU member states, is due to discuss the situation on Friday morning, a Commission spokesperson said.

EU officials said the Commission, Germany, France, Italy, Britain and Ireland had already held discussions on Thursday about the possible release of diesel reserves.

The International Energy Agency has not yet asked Germany to release its emergency stocks, Germany’s economy ministry said. It was not immediately clear when the IEA would next consider the issue.

The US administration has expressed particular frustration with France and Germany, which Washington believes have not fully implemented earlier commitments to release emergency oil and petroleum-product reserves.

“It is in Europe’s best interest to work with the United States as we pursue multiple pathways to boost the supply of refined products and lower costs for consumers,” a US official told Reuters.

Washington seeks more fuel as global supply tightens

One source familiar with the discussions said the United States had asked the European Union to release 120 million barrels of diesel over the next six months.

Europe has become increasingly dependent on US fuel supplies after banning Russian imports following Moscow’s invasion of Ukraine. The disruption caused by the US-Israeli war against Iran has further complicated supplies from the Middle East, increasing pressure on global refined-product markets.

US Energy Secretary Chris Wright said he was “highly confident” that Europe could help reduce fuel prices by drawing down its emergency diesel inventories.

“This is a time for a coordinated release of diesel stores as we go into harvest season and we go into winter heating oil season,” Wright told Fox News. He said additional diesel was available and suggested that coordinated action could produce positive results for consumers.

US Treasury Secretary Scott Bessent also called on US allies to fulfill commitments made under an agreement among International Energy Agency members in March. He said the United States had already released 172 million barrels of oil under the agreement.

“America is doing its part,” Bessent said on X, adding that Washington expected its allies to match their commitments with action.

The pressure on European reserves comes as several major fuel suppliers have taken measures that are tightening international markets.

Russia has extended its ban on diesel exports until the end of October, according to Reuters. The measure comes after Ukrainian attacks damaged several Russian refineries.

Chinese refiners have also suspended October fuel exports to strengthen domestic supplies, while PetroChina has cancelled cargoes, according to sources cited by Reuters.

The disruptions have added to concerns about the availability of diesel at a time when demand is expected to rise during the agricultural harvest and winter heating season.

Europe faces a difficult reserve decision

The European Union must balance the immediate economic pressure from high fuel prices against the strategic value of maintaining emergency stocks.

Releasing large volumes could increase supplies and potentially reduce prices, but governments may be reluctant to deplete reserves while uncertainty remains over the conflict involving Iran and the possibility of further disruptions to international energy markets.

Relations between Washington and European capitals have already been strained by disagreements over tariffs and defense spending, adding another layer of complexity to the discussions over fuel reserves.

France’s energy ministry declined to comment on the US request. An official at the Élysée Palace said Trump and French President Emmanuel Macron did not discuss the issue when they met on the sidelines of the UN General Assembly in New York the previous week.

The official said Macron would convene a video conference of G7 leaders to discuss rising fuel prices and the global availability of refined petroleum products. The meeting would also consider coordination on releasing strategic reserves in cooperation with the International Energy Agency.

The proposed G7 discussions reflect the broader international effort to manage a tightening fuel market as governments confront disruptions from several major producers.

For Washington, securing additional supplies could help ease pressure on US consumers before the November elections. For Europe, however, releasing substantial diesel reserves could reduce prices in the short term while leaving countries with smaller buffers against a further deterioration in global energy supplies.

The debate therefore places the United States and its European allies under pressure to coordinate their response to an increasingly strained global fuel market, even as they face different domestic priorities and concerns about future supply disruptions.

(Source: Reuters)