US President Donald Trump said his administration may ask European countries to release some of their emergency diesel reserves as diesel prices continue to rise in the United States and across Europe.
Speaking to reporters on Thursday, Trump was asked whether the US would seek the release of European diesel stocks. He replied: “We may do that. They have some diesel.” Trump also said that fuel prices were coming down.
The comments came as the Trump administration considers restricting or banning US diesel exports in an effort to increase domestic supplies and bring down prices for American consumers.
US Pressures Europe to Release Diesel Stocks
The US administration has urged European countries, particularly France and Germany, to release emergency diesel inventories. According to Reuters, Washington has asked the European Union to release about 120 million barrels of diesel over six months.
France and Germany hold a significant share of the EU’s emergency diesel reserves. Together, they account for about 35% of the bloc’s total reserves, according to Reuters.
US officials argue that putting more diesel into the market could help increase supplies and reduce pressure on fuel prices.
US Energy Secretary Chris Wright has also backed coordinated action, saying the time is right to release diesel stocks as countries prepare for the winter heating season.
Trump Considering US Diesel Export Ban
Trump has already said he is considering restrictions on diesel exports from the United States.
On September 30, Trump said discussions about a possible export ban were continuing. He acknowledged that restricting diesel exports could have an effect on gasoline prices but said it could help reduce diesel prices.
Earlier, on September 22, Trump said: “I’ve said let’s not send out the diesel. We make a lot of diesel.”
The administration is reportedly considering several options, including a complete export ban, voluntary limits on exports by refiners and other measures to increase domestic diesel availability.
Why Are Diesel Prices Rising?
Diesel markets have been affected by disruptions to global fuel supplies, including problems linked to the conflicts involving Iran and Ukraine, reduced Russian diesel exports and China’s decision to limit some fuel exports.
US diesel prices recently reached a record $6.53 per gallon, according to data cited by Reuters.
Europe has also faced rising diesel prices and has become increasingly dependent on imported refined fuel after cutting Russian energy imports.
A US diesel export ban could therefore have consequences beyond the American market, particularly for European countries that rely on US supplies.
What Happens Next?
The Trump administration has not yet announced a final decision on a diesel export ban. At the same time, European governments are discussing whether to release additional emergency fuel stocks.
The European Union’s energy task force is expected to discuss the issue as governments weigh the need to bring down fuel prices against the need to maintain emergency reserves for the coming months.
Trump also said oil prices could fall sharply if the conflict with Iran ends, saying: “When that ends, oil prices are going to drop like a rock.”
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