Trump weighs European diesel release as oil tops $100
US President Donald Trump said on Thursday he may ask European countries to release emergency diesel reserves as Washington seeks to ease surging fuel prices amid disruptions to global energy supplies.
“We may do that. They have some diesel,” Trump told reporters, saying prices were already coming down. He also said oil prices would “drop like a rock” if the war with Iran ends.
The comments came as the Trump administration stepped up pressure on Europe to release emergency diesel stocks. Reuters reported that Washington has urged Germany and France to draw down their reserves and has asked the European Union to release about 120 million barrels of diesel over six months.
European officials are weighing the request. The European Commission, France, Italy, Ireland and Britain held discussions on Thursday over a possible release of diesel stocks, while the EU energy taskforce is due to discuss the issue further.
The proposed release comes as Europe faces tight refined-fuel supplies, with Russia extending its diesel export restrictions and China suspending some fuel exports. Germany and France together hold more than a third of the EU's emergency diesel reserves.
Oil prices rose sharply on Thursday as uncertainty over US-Iran diplomacy and disruptions to refined-fuel supplies kept markets on edge.
Brent crude settled at $102.31 a barrel, up 4.37%, while US West Texas Intermediate rose 2.71% to $92.87. Brent had earlier moved above the $100 threshold as traders assessed the outlook for Middle Eastern supplies and negotiations involving Iran.
Prices eased on Friday, with Brent down 0.7% at $101.61 a barrel and WTI down 0.9% at $92.02, as markets weighed signs of recovering Gulf exports against continued geopolitical risks.
The Strait of Hormuz remains a key concern for energy markets because of its importance to global oil and fuel shipments.
Trump said the conflict with Iran would end “very soon” and repeated that Tehran would not be allowed to obtain a nuclear weapon. He also said Washington was considering its options as negotiations continued.
Meanwhile, US Energy Secretary Chris Wright said he was “highly confident” Europe would release diesel reserves, arguing that additional supplies were needed ahead of the harvest and winter heating seasons.
The developments underline the competing pressures facing governments as they try to increase fuel supplies, contain prices and maintain emergency reserves while uncertainty over the Iran conflict continues.
Source:AA
