France proposed that European countries and member nations of the International Energy Agency release 100 million barrels of diesel and crude oil to placate the Trump administration and help cut fuel prices. The proposal, discussed in an online meeting, includes 50 million barrels of diesel from EU countries and 50 million barrels of crude from IEA members. Washington warned it may ban diesel exports unless European nations release more emergency inventories.
Several EU countries have been slow to act, prompting President Donald Trump to call for more effort to control diesel prices. French President Emmanuel Macron discussed the energy situation with Trump and will convene a Group of Seven leaders meeting Friday at 2:30 p.m. Paris time. ICE Gasoil, Europe’s diesel benchmark, fell 5.9% to $1,365 a ton, outpacing crude oil declines.
The Iran war has boosted crude prices but placed greater strain on diesel and gasoline due to refinery shortages. Diesel has reached $6.50 a gallon in the US, hurting farmers and prompting Trump to support an export ban. Europe, which consumes more diesel than it produces, faces supply constraints amid the Iran and Ukraine wars, with few options beyond reserve releases.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing