Europe to release 42 million barrels of oil from reserves — The National

Europe plans to release 42 million barrels of oil from reserves onto the market over the next three months to reduce prices. Half of this volume will consist of diesel fuel, French Economy Minister Roland Lescure said ahead of a meeting of EU energy ministers in Luxembourg, Luxembourg, The National reports.

France to put diesel on the market

According to Lescure, France will begin supplying 10 million barrels of diesel fuel from strategic reserves in the coming days; their release was announced a month earlier. In his assessment, the effect on prices could become noticeable as early as next week.

Fuel from the reserves will be sold at cost. The French minister said this could reduce the price of diesel by 12–18 euro cents per litre. French fuel distributors were advised to advertise reduced prices starting on November 1, while small companies in remote areas will be offered interest-free loans.

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Agreements with Gulf countries

Lescure described the release of reserves as a short-term measure and said France is preparing for winter. He also reported work on a multilateral agreement to reduce the cost of insurance for ships passing through the Strait of Hormuz.

Last week, French President Emmanuel Macron visited five Persian Gulf countries in an effort to secure energy supplies. Following the trip, he reached an agreement with Saudi Arabia, Kuwait, the UAE and Bahrain on monthly deliveries of 300,000 tonnes of diesel fuel. At the same time, the impact of these supplies on retail prices remains unclear because of fluctuations in international markets. Supplies of liquefied natural gas from Qatar to France also depend on the ability of LNG carriers to pass through the Strait of Hormuz.