EU countries discussed releasing 50 million barrels of diesel on Friday, Oct. 2, as the United States pressed Europe to cool fuel prices and warned of a possible export ban. France also proposed that International Energy Agency (IEA) members release 50 million barrels of crude oil. The diesel proposal equals about 17% of the EU’s emergency diesel and gasoil stocks, and around 3% of the bloc’s annual fuel consumption.
Diesel prices had reached record highs in the United States and Europe. Later, the G7 agreed to release 100 million barrels of diesel and crude oil from reserves over four months, planning a substantial diesel release within the first 20 days.
A release under pressure
EU Energy Commissioner Dan Jørgensen called releasing strategic reserves “a possibility.” EU countries, he said, were discussing coordinated action through the Paris-based IEA, whose members include the United States. “We are discussing with all members of the International Energy Agency (IEA), not only the United States, when the right time is to release, because this is one of the opportunities that we have,” he told Europe Today on Thursday. “We've used it before, and we'll likely use it again.” National capitals retain authority over releasing EU stockpiles.
On Friday, EU countries and the European Commission held talks through the Commission’s crisis-monitoring and coordination table for energy security. Representatives from France, Germany, Ireland and the UK had spoken with the Commission on Oct. 1, a source familiar with the discussion said. Ireland, which holds the rotating presidency of the Council of the EU, confirmed the meeting.
A spokesperson for Ireland’s Department of Climate, Energy and the Environment called the diesel market “very tight,” with consumers worldwide facing high prices. Ireland was coordinating with EU countries and the Commission to “take stock of the situation” and “examine appropriate measures.” The IEA also took part in the talks.
Washington urged European allies to release more diesel or risk a U.S. export ban. U.S. Treasury Secretary Scott Bessent called on Europe to make additional supplies available “immediately.” He wrote on X: “Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions.” He added that American farmers, truckers and businesses shouldn’t “be left carrying the burden of a global diesel shortage.”
Speaking anonymously, EU diplomats described the U.S. tone as “rough” and said Washington wasn’t sending “gentle diplomatic messages.” The United States was weighing a potential 90-day ban on diesel exports. President Donald Trump had floated a ban to contain domestic fuel prices before the Nov. 3 midterm elections.
Reserves, exports and price pressures
Reuters reported that the administration had told Germany and France to draw down emergency diesel inventories or face a possible ban. According to one source, the United States demanded that major European countries, including France and Germany, release 100 million barrels of diesel within a 20-day window.
France 24 reported that European Commission spokeswoman Anna-Kaisa Itkonen said: “We fully reject any ban on diesel. A ban would not be beneficial to anyone. It would undermine our trust in the United States as a reliable partner.” She said the 27-nation bloc stood ready to work with the IEA on a possible release of fuel reserves. One Reuters source said EU countries discussed making an agreement on stock releases conditional on a U.S. commitment not to impose a unilateral export ban.
The G7 countries—Britain, Japan, Canada, Germany, France, Italy and the United States—later agreed to release 100 million barrels of diesel and crude oil from reserves over four months, according to a joint statement released by Emmanuel Macron’s office. They said they would “refrain from export restrictions on energy” between them and urged other producers not to impose bans that could intensify market tensions. “Our citizens' concerns about energy prices remain a top priority,” the leaders said.
In March, the IEA agreed to a coordinated release of 400 million barrels of strategic oil reserves in response to the Iran war, its largest-ever release. Executive director Fatih Birol said members had released about two-thirds of that volume. “A big chunk of the stocks have been released, but still some remain, both in terms of crude oil and products,” he told reporters Tuesday after a meeting of EU energy ministers in Dublin.
The war in Iran, reduced refining capacity and supply disruptions have pushed fuel prices higher. Reuters reported that Russian export restrictions, imposed after Ukraine damaged many Russian refineries, had also hit global diesel supply. Chinese refiners suspended October fuel exports to bolster domestic stocks. Europe, once reliant mainly on Russian and Middle Eastern diesel imports, had increasingly turned to U.S. imports in recent years.
Households, businesses and inflation
Italian Prime Minister Giorgia Meloni asked the European Commission for more room under EU fiscal rules to cushion households and businesses from higher energy costs. In a letter to European Commission President Ursula von der Leyen, Meloni said the prolonged Middle East crisis had left European energy markets “extremely tight,” with oil prices up almost 80% and gas up to 156%.
Rising prices, she argued, increased government tax receipts, including VAT, while fiscal rules restricted the use of additional revenue for temporary energy support. Meloni asked Brussels to let at least some additional revenue fund “temporary and targeted measures.” She also requested discussion at the finance ministers’ meeting in Brussels on Oct. 9.
Finnish central bank chief Olli Rehn said energy prices were nearing the European Central Bank’s “adverse” inflation scenario. Inflation had climbed well past 3% in recent months and could approach 4% by year-end, twice the ECB’s target. Rehn said higher long-term interest rates could slow growth and limit the pass-through of energy costs to other prices and wages.