Trump Administration Warns Europe: Tap Diesel Reserves or Face Export Curbs
The US has urged Germany and France to release emergency diesel stocks, with reports suggesting a potential ban on American diesel exports if they do not comply.
The Trump administration has reportedly urged Germany and France to tap into their emergency diesel reserves, indicating that Washington might restrict U.S. diesel exports if European nations do not increase supply. This pressure comes as President Trump reportedly considers limiting U.S. diesel exports to help reduce domestic fuel prices ahead of the midterm elections.
A source familiar with the discussions told Reuters that Washington is requesting the release of 120 million barrels of diesel from European reserves over a six-month period. Energy Secretary Chris Wright presented this proposal as an alternative to an outright ban on U.S. diesel exports, according to Politico.
European officials, including representatives from the European Commission, Germany, France, Italy, Ireland, and Britain, were discussing the matter on Thursday. A Trump administration official stated, "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."
Washington believes that Germany and France have not fully met previous commitments to draw down their emergency oil and petroleum reserves. Wright mentioned on Wednesday that the administration anticipates Europe will soon announce additional diesel supplies, citing disruptions in diesel exports from the Middle East and China.
Europe holds substantial diesel reserves, with Germany, France, Italy, Spain, and Poland possessing the largest stockpiles within the European Union. The EU's total reserves amount to 315 million barrels, meaning the volume requested by the U.S. would represent about one-third of these reserves.
A French official noted that the topic of diesel reserves was not discussed when President Trump and French President Emmanuel Macron met in New York during the UN General Assembly the previous week. However, the official indicated that Macron intended to convene G7 leaders via video to address rising fuel prices and the global supply of refined products, including coordinated reserve releases with the International Energy Agency.
Last week, the U.S. approached a major European country to discuss diesel supplies. A senior European official described the conversation as hypothetical, inquiring about the possibility of Europe releasing reserves to lower prices and ease supply pressure, which could also help the U.S. government avoid further discussion of export bans.
Europe has increased its reliance on U.S. fuel following its ban on Russian imports after Russia's invasion of Ukraine. Additionally, disruptions from the U.S.-Israeli conflict impacting the Middle East have further affected global fuel supplies.
Neither the German nor the French economic ministries immediately responded to requests for comment.