2 hrs ago
Trump Says Europe Will Release Diesel Stocks Amid Iran War
Fuel has become much more expensive because wars and other problems have disrupted oil supplies.
Diesel is especially important because trucks, farms, construction equipment and factories use it.
President Donald Trump said European countries agreed to release a large amount of diesel from their emergency supplies.
European governments were discussing a plan to release 50 million barrels of diesel over about 20 days.
They also discussed asking countries in the International Energy Agency to release crude oil.
It was not clear whether all countries had officially approved the plan.
Releasing fuel could lower prices, but it would also leave countries with smaller emergency reserves.
Trump is also considering limiting US diesel exports, which has worried European officials.
Leaders from the G7 discussed the wider energy situation as well.
Donald Trump said Europe had agreed to release a massive amount of diesel from its reserves, with the process beginning immediately.
European governments discussed a French proposal to release 50 million barrels of diesel, while International Energy Agency members could release another 50 million barrels of crude oil.
The reported European plan would release some diesel stocks over 20 days, although it remained unclear whether the proposal had been formally approved.
US diesel prices have risen sharply amid supply disruptions linked to the Iran war, while reports of possible stock releases sent futures prices lower on Friday.
The United States has urged France, Germany and other European countries to release reserves as Trump considers restricting US diesel exports.
- Who
- US President Donald Trump, US officials, European governments, and G7 leaders, including French President Emmanuel Macron, are involved.
- What
- European governments discussed releasing emergency diesel reserves, while Trump said Europe had agreed to a large release.
- Where
- The discussions took place among European governments and in a G7 videoconference; the effects are being felt in US, European and global fuel markets.
- When
- Trump made the announcement on Friday, after the United States urged European allies on Thursday to increase supplies.
- Why
- Supply disruptions linked to the Iran war, Russian export restrictions and damaged refineries have tightened diesel supplies and raised prices.
Supporters of Reserve Releases
Critics and Supply-Security Concerns
Effect on fuel prices
Supporters of Reserve Releases
The United States and supporters of the proposal say releasing reserves could increase refined-product supplies and lower costs for consumers.
Critics and Supply-Security Concerns
European officials and market participants caution that the price effect is uncertain, particularly if supply disruptions continue.
Emergency stockpiles
Supporters of Reserve Releases
A rapid release could address immediate shortages caused by disruptions in global fuel flows.
Critics and Supply-Security Concerns
European governments face the risk that drawing down reserves would leave them less able to respond to future disruptions.
US diesel export restrictions
Supporters of Reserve Releases
The Trump administration has considered export restrictions as a way to increase US domestic supplies and reduce prices before the midterm elections.
Critics and Supply-Security Concerns
European officials said a US export ban would be unexpected and could have very serious economic consequences by reducing supplies available to Europe.
Key facts
- Proposed European diesel release
- 50 million barrels
- Potential crude release
- Another 50 million barrels from International Energy Agency members
- Proposed release period
- About 20 days
- US diesel price increase
- Average US diesel prices were reported to have risen more than 70% to $6.39 per gallon since the conflict began.
- Reported US diesel futures price
- US diesel futures fell more than 4% on Friday to $4.4491 per gallon after reports of a possible stock release.
- Potential US policy
- President Trump was considering restricting or banning US diesel exports.
- European stock share
- The proposed 50-million-barrel release would represent about 17% of the European Union's emergency diesel and gasoil stocks, according to the cited data.
Quotes
Scott Bessent
US Treasury Secretary
“Having been caught dragging their feet on promised strategic stock releases earlier this year and now jarred by possible US export restrictions, European countries will likely release more diesel and possibly crude from their stocks”
wionews.com
“accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions.”
businesstoday.in
Sources
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