European Union countries discussed a French proposal on Friday to release diesel stocks in an effort to ease surging fuel prices, according to two sources familiar with the discussions cited by Reuters.
Under the proposal, European countries would release 50 million barrels of diesel, while members of the International Energy Agency (IEA) would release another 50 million barrels of crude oil.
US pushes Europe to release fuel reserves
The discussions come after the Trump administration pressed Germany and France to draw down emergency diesel inventories, according to Reuters.
The US has demanded that major European countries, including France and Germany, release 100 million barrels of diesel within a 20-day period, one source said.
US President Donald Trump has also said he is considering a potential diesel export ban as Washington seeks to lower fuel prices ahead of the November 3 midterm elections.
France currently holds the G7 presidency, and G7 leaders could hold a call on Friday afternoon to discuss the issue.
Global diesel supplies under pressure
Diesel supplies have been affected by several disruptions to global fuel markets.
The Iran war has reduced available supplies, while Russia has banned exports after Ukrainian attacks damaged several of its refineries. Chinese refiners have also suspended October fuel exports to strengthen domestic stocks, according to sources cited by Reuters.
EU governments discussed whether any further diesel stock release should be accompanied by a US commitment not to impose a unilateral diesel export ban.
IEA already agreed major oil release
The latest proposal comes after the 32-member IEA agreed in March to coordinate the release of 400 million barrels from strategic oil reserves.
The move was intended to address supply disruptions linked to the Iran war and was described as the largest coordinated release of strategic oil reserves in the agency’s history.
The French finance and energy ministry had not immediately responded to Reuters’ request for comment.
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