European Union (EU) countries discussed a French proposal yesterday to release diesel stocks in response to US pressure to help cool surging fuel prices linked to the Iran war, three sources familiar with details of the discussion told Reuters.
The proposal, discussed on a call involving EU governments, calls for European countries to release 50 million barrels of diesel and International Energy Agency members to release 50m barrels of crude oil, the sources said.
Europe would release part of the diesel volumes in a 20-day period, responding to US President Donald Trump’s demand for a rapid release of fuel stocks, two of the sources said.
The discussions underscore growing pressure on Europe as Trump considers a potential ban on US diesel exports to help lower domestic fuel prices ahead of November 3 midterm elections. In weighing its response, the EU needs to balance the need to ease soaring fuel costs against preserving emergency reserves to safeguard against uncertain supply from Gulf producers due to disruptions caused by the Iran war.
France’s finance and energy ministry did not immediately respond to a request for comment.
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