Oil Prices Fall as EU Discusses French Proposal to Release Diesel and Crude Reserves
Oil prices fell about 3 per cent on Friday after European Union countries discussed a French proposal to release additional diesel and crude stockpiles, easing concerns over tight global energy supplies, according to Reuters.
In a call on Friday, EU governments discussed the French plan for European countries to release 50 million barrels of diesel and for International Energy Agency members to release 50 million barrels of crude oil, a source familiar with the details told Reuters. The talks came in response to pressure from the Trump administration, which has been pushing European nations to release emergency fuel stocks to bring down surging prices.
Brent crude fell $2.83, or 2.77 per cent, to $99.48 a barrel, while US benchmark West Texas Intermediate dropped $3.35, or 3.61 per cent, to $89.52, Reuters reported. European gasoil futures, a benchmark for diesel prices, sank more than 5 per cent to $1,377 a metric ton. Both benchmarks were set for a weekly decline, with Brent down about 4.7 per cent for the week.
Countries discussed making any agreement conditional on a US commitment to avoid a unilateral diesel export ban, the source said, and G7 leaders could hold a call on Friday afternoon to discuss next steps.
The sell-off followed a Thursday post by US Treasury Secretary Scott Bessent urging European partners to "accelerate delivery on their existing commitments and make additional supplies immediately available". "American farmers, truckers, and businesses should not be left carrying the burden of a global diesel shortage," he wrote.
"The whole energy complex trades lower, led by gasoil and ULSD, as EU countries discuss releasing fuel and crude stockpiles to ease acute market tightness and help avert a potential US diesel export ban," Ole Hansen, head of commodity strategy at Saxo Bank, told Reuters.
Sources
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