Brussels: European Union countries discussed a French proposal on Friday to release 50 million barrels of diesel from emergency reserves as pressure from the United States grows for Europe to put more fuel on the market and help ease rising prices.
The proposal also calls for members of the International Energy Agency to release another 50 million barrels of crude oil. The two proposals together would involve 100 million barrels of oil and fuel, but only half of that amount would be diesel.
The discussions do not mean that the European Union has approved the release. Governments are still considering the details, including how the fuel would be released and what assurances would be needed from the United States.
A key issue is a possible decision by Washington to restrict US diesel exports. President Donald Trump has been considering an export ban as the United States faces sharply higher fuel prices. The issue has also become important ahead of the November 3 midterm elections.
European governments have discussed linking any further release of diesel reserves to a US commitment not to impose a unilateral export ban.
The United States is pressing Europe to release more diesel from its reserves while also considering restrictions on US diesel exports to address domestic fuel prices. European governments are concerned that an export restriction could reduce supplies available on the international market.
The European Commission held a meeting on Friday with representatives of EU member states to examine diesel supplies and prices. The Commission said EU diesel supplies remain stable for the time being, although prices remain high because of tight conditions in the global market.
The Commission also said that the International Energy Agency briefed European officials about the progress of a collective oil stock release that began in March.
The current situation is linked to wider disruptions in global energy markets. The conflict in the Middle East has disrupted oil supplies and contributed to higher fuel prices.
Russian diesel exports have also been disrupted following attacks on Russian refineries and subsequent Russian restrictions on fuel exports.
China has also suspended most fuel exports for October as refiners work to strengthen domestic supplies.
The International Energy Agency has already taken major action during the energy crisis. Its 32 member countries agreed in March to release 400 million barrels of oil from emergency stocks. The agency described the action as the largest emergency oil stock release in its history.
The French proposal would represent another possible effort to increase supplies. The proposed 50 million barrels of European diesel would be separate from the proposed 50 million barrels of crude oil from IEA members.
The United States has been pressing European governments, particularly France and Germany, to release more diesel from their emergency reserves. Earlier reports indicated that Washington had asked major European countries to release 100 million barrels within a period of 20 days.
US Treasury Secretary Scott Bessent has urged European partners to speed up their existing commitments and make additional supplies available. US Energy Secretary Chris Wright has also argued that European reserves could help ease pressure on the global diesel market.
France has proposed the European diesel stock release and has been active in discussions over the wider energy situation.
French President Emmanuel Macron has discussed the energy situation with President Donald Trump and has called for international cooperation to deal with rising fuel prices and ensure the availability of refined products.
France currently holds the presidency of the Group of Seven. A G7 discussion is expected to focus on measures to ease pressure on fuel prices and protect supplies of crude oil and refined products.
Germany and France hold a large share of Europe's emergency diesel stocks, making their contributions important to any coordinated release.
The possible release has already affected financial markets. Oil and European diesel prices fell on Friday as traders responded to the prospect of additional supplies.
The European Commission has said that EU diesel supply remains stable for now. The immediate concern is the pressure from high prices and tight global markets rather than a confirmed shortage of diesel across Europe.
The physical release of the proposed reserves has not yet been confirmed. It is also not clear which European countries would contribute how much diesel, when the fuel would reach the market or whether IEA members will approve a new 50 million barrel crude release.
The United States has also not announced a final decision on a diesel export ban.
European officials are continuing discussions while monitoring fuel supplies and prices. Governments must also consider how much emergency fuel can be released while maintaining reserves for possible future disruptions.