According to a report by the European edition of 'Politico News Network' on October 1st, after the United States demanded that Europe release its diesel reserves, several European countries and the European Commission held an emergency meeting that day. They decided to coordinate their positions and work together to counter the pressure from the United States.
Three European officials revealed that France, Germany, the United Kingdom, Italy, Ireland, and the European Commission participated in this meeting.
Two people familiar with the matter said that these countries were privately pressured by the United States, and were asked to release their domestic reserves.
Sources familiar with the situation said that these countries have reached three points of consensus with the European Commission: first, there should be a "coordinated response" to pressure on the United States; second, any decisions regarding the release of stocks should be coordinated at the level of the International Energy Agency (IEA); third, efforts should be made to "ease tensions" during communications with the United States.
Affected by the wars in Ukraine and Iran, the price of diesel in the United States has risen significantly, reaching a historic high of $6.53 per gallon last week. As the U.S. midterm elections approach, the continuous rise in diesel prices is putting increasing pressure on the Trump administration.
Reuters previously reported that in order to lower global diesel prices and alleviate fuel costs before the mid-term elections in November, Trump and his government are studying various measures, including urging the EU to use emergency diesel stocks.
Sources said that the White House is dissatisfied with some European countries, as they have not fulfilled their commitments made earlier this year to use emergency oil and refined oil reserves to address supply disruptions and price increases caused by the conflict in Iran and the blockage of shipping routes in the Strait of Hormuz. Moreover, U.S. officials are particularly dissatisfied with France and Germany.
Three people close to the discussions said that the Trump administration has asked Germany and France to use their emergency diesel inventories to help ease global fuel price pressures. Otherwise, the United States may impose a ban on diesel exports. The European Union relies heavily on American diesel supplies.
Another source based in the capital of a European country said that the United States has requested the EU to release 120 million barrels of diesel within the next six months.
A source familiar with the situation told Politico Europe that their goal is to ‘cool down’. ‘When communicating with the US, it’s important to be both firm and proactive… When facing a hungry lion, you don’t necessarily need to play any tricks.’
This person added that more European countries will convene on February 2nd to discuss response measures, with some facing pressure from the Trump administration.
Trump has repeatedly stated his intention to ban diesel exports. On September 30, he said that he discusses the issue of banning diesel exports “every day”. Banning diesel exports could have an “adverse effect” on gasoline prices, but it would help to lower diesel prices.
The United States is a major exporter of diesel fuel. More than half of the diesel fuel imported by the European Union comes from the United States. If the United States prohibits the export of diesel fuel, it will have a serious impact on the European economy.
