The United States has asked the European Union to release 120 million barrels of diesel from emergency inventories over the next six months, while warning France and Germany that Washington could restrict US diesel exports if more supply is not made available, Reuters reported on Thursday. The request is aimed at easing a global shortage that has driven diesel prices to record or near-record levels in several markets.
Germany and France are central to the discussions because together they hold about 35% of the EU’s strategic diesel reserves. Reuters calculated that the requested 120 million barrels would amount to more than 40% of the 39 million metric tons of emergency gasoil and diesel stocks held by EU states in the latest available Eurostat data. It is also roughly equal to one month of total EU diesel and gasoil consumption.
European officials face a trade-off between lowering fuel prices now and preserving inventories in case supply conditions worsen. The European Commission, Germany, France, Italy, Britain and Ireland discussed a possible coordinated release on Thursday, according to Reuters. The EU’s energy task force, which includes the Commission and all 27 member states, was due to hold another call on Friday. Germany’s economy ministry said the International Energy Agency had not yet asked Berlin to release stocks.
The supply squeeze reflects disruptions across several producing regions. Europe has become more dependent on US fuel since banning Russian imports after Moscow’s invasion of Ukraine, while the US-Israeli war with Iran has reduced Middle Eastern supplies. Russia has extended its diesel export ban through the end of October after attacks damaged refineries, and Chinese refiners suspended October fuel exports to reinforce domestic stocks. Those interruptions have increased the importance of US exports to the global market.
Washington is considering restrictions because the administration wants to lower domestic fuel costs before the November midterm elections. Oilprice.com reported that US diesel reached a record $6.5276 per gallon on September 22. The outlet also said President Donald Trump had acknowledged that an export ban could have a negative effect on gasoline prices, illustrating the risk of shifting pressure from one refined product to another rather than resolving the overall shortage.
MarketWatch reported that analysts see significant cross-border consequences if the US limits exports. Goldman Sachs estimated that a ban could add $0.30 per gallon to US retail gasoline prices each week and lift European diesel prices by 2% per week. The bank estimated that releases from European stockpiles could offset about half of that impact. The calculations underline why both sides are considering coordinated reserve action before adopting formal trade restrictions.
What it means for traders: the negotiations matter for global energy markets because a large emergency diesel release could reduce immediate pressure in refined-product markets, while an unresolved dispute or a US export ban could deepen regional shortages. Diesel availability also feeds into transport, agriculture and industrial costs, making the outcome relevant to inflation expectations. For EUR/USD, a sharper European fuel shock would add to the region’s growth and inflation challenges, while a coordinated release would provide some near-term supply relief.
The next developments to watch are Friday’s EU energy-task-force discussion, any decision by France or Germany to draw down reserves, and whether the International Energy Agency coordinates a wider response. Markets will also track US policy statements on export restrictions, Russia’s October ban and whether China resumes fuel exports. Until additional barrels are formally released, the 120-million-barrel request remains a proposal rather than new supply entering the market.