European countries are in crisis talks over the release of diesel stocks, as the US threatens them with a diesel export ban unless they release strategic reserves. Three people familiar with the matter said the US administration had put pressure on European countries, warning it could ban US diesel exports if they do not comply.
The European Commission held talks with large EU member states about a potential release. “We are in very close contact to co-ordinate with our member states how we go forward and we have on a separate track also high-level contacts with the US administration on this,” said Anna-Kaisa Itkonen, a spokesperson for the European Commission.
A Trump administration official told the FT: “It is in Europe’s best interests to work with the United States as we pursue multiple pathways to boost the supply of refined products and lower costs for consumers.” Donald Trump is under pressure to lower prices ahead of US midterm elections. The US oil industry has urged the administration to ask European allies to release diesel stocks to prevent a ban.
One industry source said Europe may hold up to 400mn barrels of diesel in commercial inventories. Members of the International Energy Agency in March agreed to release 400mn barrels of emergency stocks globally. US energy secretary Chris Wright urged every member country to fulfil its commitments. Fatih Birol, head of the IEA, said some European countries had not yet released all pledged stocks.
Source: Financial Times Companies · Summarized by HeadlinesBriefing