U.S. Threatens Diesel Export Ban Unless Europe Releases Stockpiles
The U.S. Administration has urged Germany and France, Europe’s largest economies that hold a sizeable chunk of the EU’s emergency reserves, to release diesel from emergency stockpiles or face a potential U.S. diesel export ban, sources close to the discussions told Reuters on Thursday. Since crude oil prices jumped again in September to above $100 per barrel and the global fuel markets,…
The United States Administration has urged Germany and France, Europe's largest economies, to release diesel from emergency stockpiles or face potential export restrictions, according to sources close to the discussions reported by Reuters. Diesel prices have surged to record highs in many countries, including the United States, as global fuel markets tighten following a significant increase in crude oil prices above $100 per barrel in September.
Although President Trump appeared less inclined to implement a ban on diesel exports, the Administration continues to explore various options to address the diesel supply crunch, such as pressuring Europe to release more emergency stocks. Germany and France collectively hold about 35% of the EU's strategic diesel reserves, with the EU as a whole estimated to possess approximately 39 million tons of diesel, equivalent to more than two months' consumption for the entire bloc.
The U.S. is urging European countries that have not yet fulfilled their commitments under an IEA-led stock drawdown to release more emergency diesel stocks, with Energy Secretary Chris Wright stating that new supplies from Europe will help drive down diesel prices.
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