Trump Administration Threatens Diesel Export Ban, Pressures Europe on Reserves

The Trump administration has pressured Germany and France to release diesel from their emergency reserves, warning Washington could restrict US diesel exports if they do not.

US President Donald Trump is considering curbing US diesel exports to reduce fuel prices ahead of November's midterm elections. Energy Secretary Chris Wright presented the plan to release European reserves as an alternative to an outright US export ban. Wright stated the administration expected Europe to announce additional diesel supplies soon, noting lost diesel exports from the Middle East and China.

European officials discussed the issue Thursday, with the European Commission, Germany, France, Italy, Ireland, and Britain holding a call on a possible release of diesel stocks. Five European countries and the European Commission agreed at an emergency meeting Thursday to respond with one voice to US pressure. They agreed to elevate decisions about releasing stocks to the International Energy Agency level.

Washington is asking the European Union to release 120 million barrels of diesel from reserves over a six-month period, which would be a third of the EU's total reserves. Germany and France hold about 35 percent of the bloc's emergency reserves. China's refiners suspended exports of oil products to regions beyond Hong Kong and Macau until further notice, and Russia extended its ban on diesel exports until October 31. Diesel prices have reached record highs, with the EU average hitting €2.24 per liter.