The Trump administration has urged Germany and France to release emergency diesel inventories to help ease global fuel prices, warning that Washington could restrict US diesel exports if European countries do not increase supplies, Reuters reports, citing people familiar with the discussions.
The pressure marks an escalation in Washington’s efforts to contain fuel costs as President Donald Trump weighs a potential diesel export ban ahead of November’s midterm elections. A restriction on US exports would be aimed at keeping more refined fuel within the domestic market and reducing prices for American consumers.
The European Commission, Germany, France, Italy, Ireland and Britain were scheduled to hold a call on Thursday to discuss whether emergency diesel stocks should be released, according to an EU official.
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US officials have been frustrated with Germany and France, which Washington believes have not fully followed through on earlier commitments to release emergency oil and petroleum reserves, Reuters has previously reported.
“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.
A second source, based in a European capital, said the United States had asked the European Union to release 120 million barrels of diesel over the next six months.
The scale of the request reveals the enormity of the pressure facing fuel markets as disruptions to global refined-product flows compound the effects of higher crude prices. Europe has become increasingly reliant on imported refined fuels following its ban on Russian oil products after Russia’s invasion of Ukraine and disruptions to Middle Eastern supplies linked to the war between the United States and Israel and Iran.
US Energy Secretary Chris Wright said on Wednesday that the administration expected European countries to announce additional diesel supplies soon.
“We’ve lost some diesel exports from the Middle East, although we’re restoring those, and we’ve lost diesel exports from China,” Wright told reporters. “So that’s a lot of interruptions.”
The situation has created a difficult balancing act for European governments. Releasing emergency reserves could increase the availability of diesel in the wider market and potentially ease prices, but it would also reduce the fuel inventories available to cushion Europe against another supply disruption.
An official at the Élysée Palace said Trump and French President Emmanuel Macron did not discuss the diesel issue when they met on the sidelines of the United Nations General Assembly in New York last week.
Macron is nevertheless preparing to convene a video conference of G7 leaders to discuss rising fuel prices and the availability of refined products. The meeting is expected to address coordination over the release of emergency reserves in cooperation with the International Energy Agency.
The pressure on Europe comes as Washington considers whether restricting US diesel exports could lower domestic prices. Such a move could have broader consequences because the United States is a major supplier of refined petroleum products to international markets. Removing American barrels from the global market could tighten supplies elsewhere even as it increases availability for US consumers.
For Europe, the situation is especially sensitive because the region’s energy system has undergone a major restructuring since Russia’s invasion of Ukraine. European countries have replaced Russian energy imports with supplies from the United States, the Middle East, and other producers, increasing the importance of global refined-product trade.
The war involving the United States and Iran has added another layer of uncertainty by disrupting Middle Eastern energy flows. While some supply routes are being restored, the disruption has contributed to higher fuel prices and increased competition for diesel cargoes.
Washington is therefore pushing European governments to use their own reserves at a time when the US is considering limiting exports. The approach would shift some of the burden of maintaining global refined-product availability toward Europe while allowing the United States to retain more diesel for its domestic market.
Emergency fuel inventories were designed primarily as a buffer against supply disruptions. European governments being asked now to deploy those stocks to influence prices and compensate for interruptions in international trade has been described as another attempt by Trump to armtwist sovereign nations. The view is becoming amplified, especially as it borders on the resulting effects of the US-Israel war on Iran.
European governments have distanced themselves from the conflict, defying early pressure by the Trump administration to back the US in the war. Thus, it is not clear whether European governments will agree to the US request.