The U.S. Administration has pressured Germany and France to release diesel from their emergency strategic reserves or face potential restrictions on American diesel exports, according to sources briefed on the discussions. This move comes as crude oil prices surged above $100 per barrel in September, creating significant tightness in global fuel markets and pushing diesel prices to record levels across multiple countries, including the United States.
President Trump indicated during an Oval Office briefing that while the Administration continues to evaluate a diesel export ban daily, such a measure could have negative consequences for gasoline markets. The export ban proposal emerged earlier when U.S. retail diesel prices reached unprecedented levels, first hitting $6 per gallon on a national average basis, then climbing further to $6.50 per gallon.
Germany and France collectively hold approximately 35% of the European Union’s strategic diesel reserves. The EU maintains an estimated 39 million tons of diesel in storage, representing over two months of consumption for the bloc. U.S. Energy Secretary Chris Wright indicated that European countries have not fully released petroleum products previously pledged under International Energy Agency-led stock drawdown measures, noting that the United States and Japan have fulfilled their commitments while several European member states have released only partial quantities of crude oil and petroleum products they committed to providing.
Wright suggested during recent remarks that announcements regarding new diesel supplies from European sources would be forthcoming and could significantly reduce diesel prices. The Administration is exploring multiple approaches to address the diesel supply crisis, with diplomatic pressure on European nations representing one key strategy alongside consideration of export restrictions.
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