The United States has told France and Germany to draw down their diesel reserves or face a ban on US diesel exports, according to Reuters, which cited sources. The warning was delivered as Washington pressed European governments to put more fuel on the market.
Reuters reported the demand on Thursday. Politico, citing the same development, said the Trump administration's energy chief asked Europe to release more than a third of its diesel reserves. The European Union is in high-level talks with the United States about the oil market and a possible release of stocks, according to Anadolu Ajansı.
The discussions center on diesel, a fuel used for freight, farming and heating, and on how much of Europe's stored supply should be made available. The reported US threat ties access to American diesel exports to whether France and Germany act on their own reserves.
The details of the request, including the exact volume sought and the timeline, have not been confirmed publicly. The reporting rests on unnamed sources, and neither the US government nor the French and German governments have issued statements in the material available. It is also not clear what legal or administrative steps a US export ban would involve.
Market analysts have been watching the spread between WTI and Brent crude, according to Rigzone, a signal of how traders view supply conditions. Any restriction on US diesel shipments would affect flows into Europe, which relies on imports to meet part of its demand.
What to watch next: whether France and Germany agree to release reserves, and whether Washington follows through on the export ban threat.
