US threatens to ban diesel exports over EU reserves — OilPrice

The US administration has called on Germany and France to release diesel fuel from emergency reserves, otherwise Washington may impose a ban on diesel exports from the United States. OilPrice reported this, citing Reuters sources familiar with the course of the discussions.

France's and Germany's reserves

According to the outlet, France and Germany together hold about 35% of the European Union's strategic reserves of gasoil and diesel fuel. The EU's total diesel reserves are estimated at about 39 million tonnes, equivalent to more than two months of the bloc's consumption.

The United States is also pressuring European countries that, according to the US assessment, have not fully released the volumes of oil and petroleum products promised under the International Energy Agency-coordinated use of reserves at the start of the war with Iran.

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Record diesel prices

Amid oil prices rising above $100 per barrel in September and increased tension in the diesel market, prices for this fuel reached record levels in many countries. In the United States, diesel cost a record $6.5276 per gallon on September 22.

US President Donald Trump said the administration discusses the advantages and disadvantages of a diesel export ban every day. At the same time, he warned that such a move could negatively affect gasoline prices.

US Energy Secretary Chris Wright said Washington expects announcements from European partners regarding new volumes of diesel that could reach the market. Earlier, he said that the United States and Japan were fulfilling their commitments, while several European states had released only part of their promised reserves.