Trump administration urges France and Germany to release emergency diesel reserves or risk a US diesel export ban, as EU leaders weigh stock releases to ease global fuel prices amid supply disruptions
WASHINGTON/BRUSSELS/PARIS: The Trump administration has told Germany and France to draw down emergency diesel inventories to help to ease global fuel prices or face a potential US diesel export ban, said three people close to the discussions.
The warning marks an escalation of pressure on Europe as US President Donald Trump considers a potential diesel export ban to bring down US fuel prices ahead of November’s midterm elections.
The European Commission, Germany, France, Italy, Ireland and Britain were holding a call on Thursday to discuss the possible need to release diesel stocks, an EU official told Reuters.
The US administration has been particularly frustrated with France and Germany, which US officials believe have not fully followed through on earlier commitments to release emergency oil and petroleum stocks, Reuters has reported previously.
“It is in Europe’s best interest to work with the United States as we pursue multiple pathways to boost the supply of refined products and lower costs for consumers,” one of the sources, a US official, told Reuters.
A second source, based in a European capital, said that the US has asked the EU to release 120 million barrels of diesel in the next six months.
US Energy Secretary Chris Wright told reporters on Wednesday that the US administration expected announcements soon from Europe about new diesel supplies.
“We’ve lost some diesel exports from the Middle East, although we’re restoring those, and we’ve lost diesel exports from China,” he said. “So that’s a lot of interruptions.”
Germany’s economy ministry did not respond immediately to a request for comment. France’s energy ministry declined to comment.
An official at the Elysee Palace said that French President Emmanuel Macron and Trump had not discussed the issue when they met on the sidelines of the UN General Assembly in New York last week.
However, the official said that Macron would convene a video conference of leaders of G7 countries to address rising fuel prices and the global availability of refined products, including the coordination of the release of reserves in conjunction with the International Energy Agency.
Europe has become increasingly dependent on US fuel after banning Russian imports over Russia’s invasion of Ukraine and after the US-Israeli war against Iran disrupted supplies from the Middle East.
Source: Emirates 24|7