European Union countries on Friday discussed a French proposal to release 50 million barrels of diesel from strategic stocks amid US pressure to help ease surging fuel prices, two sources familiar with the discussions told Reuters.
Under the proposal, European countries would release 50 million barrels of diesel, while members of the International Energy Agency would release an additional 50 million barrels of crude oil, the sources said.
The discussions came after the Trump administration urged major European countries, including France and Germany, to draw down emergency diesel inventories. The US has also considered imposing restrictions on diesel exports to help lower domestic fuel prices ahead of the November 3 midterm elections.
One source said the US had demanded that France, Germany and other large European countries release a combined 100 million barrels of diesel within a 20-day period.
EU governments also discussed making any agreement on additional diesel stock releases conditional on a US commitment not to impose a unilateral ban on diesel exports, one of the sources said.
The talks come as global diesel supplies face pressure from the war in Iran and a Russian export ban following Ukrainian attacks on its refineries. Chinese refiners have also suspended October fuel exports to strengthen domestic inventories, according to sources.
The 32-member IEA agreed in March to coordinate the release of 400 million barrels of strategic oil reserves in response to supply disruptions caused by the Iran war, marking the largest such release in the agency’s history.
France’s finance and energy ministry did not immediately respond to a request for comment. France, which currently holds the G7 presidency, is also expected to participate in discussions among G7 leaders on the next steps.
Boluwatife Enome
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