The Trump administration has urged Germany and France to reduce their emergency diesel supplies to help lower rising global fuel prices, or they may face a potential US ban on diesel exports. This warning intensifies pressure on Europe as President Trump considers actions to lower US fuel prices before the midterm elections. The relationship between Europe and the US has deteriorated due to tariff disputes and military spending disagreements.
For the EU, releasing more diesel stocks poses a challenge. It must weigh the need to decrease fuel prices against the necessity of keeping sufficient stocks in case the fuel crisis worsens, particularly if no peace deal is reached between the US and Iran. The EU’s energy taskforce plans to hold discussions on the matter. Previous discussions have occurred involving multiple countries, including Germany and France, regarding the possible need to release diesel stocks.
US officials are frustrated with France and Germany for not fully following through on commitments to release emergency oil stocks. The US has requested the EU to release 120 million barrels of diesel over the next six months. Europe increasingly relies on US fuel after banning Russian imports and due to supply disruptions from the Middle East.
US Energy Secretary Chris Wright noted that there have been significant supply interruptions affecting diesel exports from the Middle East and China. Meanwhile, France’s energy ministry has not commented, but President Macron plans to hold a video conference with G7 leaders to discuss rising fuel prices and coordinate global oil reserves releases with the International Energy Agency.
With information from Reuters
