The U.S. gives France and Germany an ultimatum: Release your oil reserves or face a ban on American exports

WASHINGTON – President Donald Trump’s administration has given France and Germany a direct ultimatum: to draw diesel from their emergency reserves to soften global fuel prices, or to face the possibility of an American ban on diesel exports. The news is reported by Reuters in an exclusive on Thursday (October 1), citing three people close to the discussions.

According to Reuters, Washington has asked the European Union to release around 120 million barrels of oil onto the market over the next six months. This marks a new and clear escalation: while in September Trump expressed only support for the idea of an export ban, the pressure has now taken the form of a concrete ultimatum to European allies, as MarketWatch also notes.

U.S. Trade Representative Jamieson Greer confirmed the direct contacts. “I spoke yesterday with my French counterpart. A very good conversation… I will meet EU officials today and convey the same message to them,” he told Bloomberg on Thursday.

The Europeans are moving on their side. An EU official told Reuters that the European Commission, Germany, France, Italy, Ireland and Britain are holding a call today to discuss a possible release of diesel reserves, while the International Energy Agency (IEA) will meet on Friday. According to the official, the EU “will take action as needed”.

U.S. Energy Secretary Chris Wright said on Wednesday that the U.S. expected announcements from Europe soon on new diesel supplies, after the country lost diesel exports from the Middle East and China.

In the background stand the November 3 midterm elections and record fuel prices in the U.S.: diesel reached its all-time record of $6.53 a gallon last month and today costs around $6.39 a gallon, according to AAA data. Precisely to lower these prices, Trump is considering a ban on diesel exports – a move that could shake global energy markets.