US President Donald Trump posted on Truth Social that Europe has agreed to release diesel from its reserves, with the process set to begin immediately. Reuters reported, citing sources, that European Union member states discussed today a French proposal to release diesel from reserves in response to US pressure for European nations to help curb surging fuel prices. The proposal calls for European countries to release 50 million barrels of diesel and for member countries of the International Energy Agency, or IEA, to release another 50 million barrels of crude oil. One source told Reuters that the United States has asked major European nations, including France and Germany, to release 100 million barrels of diesel within a 20-day timeframe. Meanwhile, President Donald Trump is weighing the possibility of ordering a ban on US diesel exports to help lower domestic fuel prices ahead of the US midterm elections on November 3. In a conference call today, EU member states discussed setting a condition that if an agreement is reached on releasing diesel from European reserves, the United States must commit not to impose a unilateral diesel export ban. The IEA, which has 32 member countries, agreed in March to jointly release 400 million barrels of strategic reserves, the largest release in history, and IEA Executive Director Fatih Birol said member countries have already released about two-thirds of the total agreed volume.
Europe and IEA agreeing to release 50 million barrels of diesel plus 50 million barrels of crude reserves, and a possible US diesel export ban, would boost diesel/heating oil supply and pressure prices lower.
