US tells France and Germany to release diesel stocks or face US export ban, sources say

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.

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,.

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 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.

"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. "The Iran war has disrupted one of the key sources of oil ​and fuel for the world.

Russia has extended its ban on diesel exports until the end of October, adding further strain on ​the market, after Ukraine ⁠damaged many of its refineries. Chinese refiners suspended October fuel exports to bolster domestic stocks, sources said.

France's energy ministry declined to comment. An official at the Elysee Palace said that French President Emmanuel Macron and Trump did not discuss the issue when they met on the sidelines of the UN General Assembly in New York last week.

However, the official said that Macron would convene ⁠a video ​conference of leaders of G7 countries to address rising fuel prices and the global availability of refined ​products, including the coordination of a release of reserves in conjunction with the International Energy Agency.