The Trump administration has told Germany and France to draw down emergency diesel inventories to help ease soaring global fuel prices or face a potential US diesel export ban, according to three people close to the discussions.
The warning marks an escalation in pressure on Europe as US President Donald Trump considers a potential ban to help bring down US fuel prices ahead of November’s midterm elections.
Europe’s relationship with Washington has soured under Trump due to tariff disputes and disagreements over military spending.
For the EU, releasing more stocks would represent a dilemma as it needs to balance the need to bring down fuel prices at home with maintaining high stocks for a possible worsening of the fuel crisis should Trump and Iran not reach a peace deal.
The EU’s energy taskforce — made up of the European Commission and the 27 EU member countries — will hold a call on Friday morning to discuss the situation, a Commission spokesperson said.
The Commission, Germany, France, Italy, Britain and Ireland already held a call on Thursday to discuss the possible need to release diesel stocks, two EU officials told Reuters.
The International Energy Agency, the West’s energy watchdog, has not yet asked Germany to release stocks, Germany’s economy ministry said. It was not clear when the IEA might meet next.
The US administration has been particularly frustrated with France and Germany, which US officials believe have not fully followed through on earlier commitments to release emergency oil and petroleum product stocks, Reuters has reported previously.
“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,” one of the sources, a US official, told Reuters.
A second source, based in a European capital, said that the US has asked the EU to release 120 million barrels of diesel over the next six months.
Europe has become increasingly dependent on US fuel after banning Russian imports over Russia’s invasion of Ukraine and after the US-Israeli war against Iran disrupted supplies from the Middle East.
US Energy Secretary Chris Wright told Fox News on Thursday that he was “highly confident” Europe could ease fuel prices by drawing down emergency diesel inventories.
“This is a time for a coordinated release of diesel stores as we go into to harvest season and we go into winter heating oil season,” Wright told Fox. “Now’s the time to bring more diesel to the market, and that diesel is available. I think we have some positive news coming.”
US Treasury Secretary Scott Bessent said Washington had done its share of an agreement struck in March among International Energy Agency members in releasing 172 million barrels of US oil. “America is doing its part,” Bessent said on X. “We look to our allies to match their commitments with action.”