EU nears compromise on fuel reserves under U.S. threat of a diesel export ban

Brussels is nearing a fuel compromise under American pressure. As Al Jazeera reports from Brussels, officials briefed on the talks say Europe is trying at all costs to avoid the U.S. implementing a ban on diesel exports. Russian supplies have practically disappeared after the full invasion of Ukraine, so the United States has become the key supplier — “there is really no domestic supply in Europe,” they say.

In the negotiating room, member states expressed frustration that the U.S. is pressuring countries with the call to release fuel reserves. All signs point toward the announcement of a European release that will be seen as a compromise offer to Washington. According to the Reuters agency, it concerns around 100 million barrels — a mix of diesel and crude oil — the details of which could be worked out today in the G7 call expected to be convened by France as soon as possible.

French President Emmanuel Macron will today chair a video call with his G7 counterparts on possible measures on the global supply of oil and refined products, the Elysee Palace announced. Macron is said to have already spoken overnight with President Trump and Canadian Prime Minister Mark Carney in two separate conversations. France has asked EU partners to release additional diesel reserves, in response to Trump’s calls for more supply to bring down rapidly rising prices.

A day earlier, Trump said the U.S. could ask European countries to release diesel reserves to curb the price rises due to the war on Iran, after Treasury Secretary Scott Bessent called on Europe to use the reserves “immediately”. U.S. Energy Secretary Chris Wright said he was “very confident” that Europe could help with a release of emergency diesel reserves. Meanwhile, European Commission spokeswoman Anna-Kaisa Itkonen said the EU “completely rejects” the American threat: “A ban would not be useful for anyone. It would undermine our trust in the U.S. as a reliable partner.”

The Irish Presidency of the EU announced that it will convene a meeting of COREPER, the Committee of Permanent Representatives, today on the global energy situation, while EU ambassadors meet at 13:30 GMT. “The diesel market is currently very tight, leading to high prices for consumers around the world,” the Presidency’s spokesman said. The next meeting of the EU Oil Coordination Group is scheduled for October 15, but could be held earlier if necessary.

In the background, the American war against Iran has tightened the global supply of diesel, disrupting flows from Gulf producers, while Russia’s export ban and China’s ban on fuel exports for October have deepened the shortage. On Friday, EU countries discussed a French proposal to release 50 million barrels of diesel — around 17 percent of the bloc’s emergency reserves. In March, the International Energy Agency agreed on the largest release ever, of 400 million barrels; around two-thirds have been released so far, IEA chief Fatih Birol said this week.