EU discusses French proposal to release diesel stocks as US export ban looms

The European Union member states have discussed a French proposal to release strategic diesel stocks to address soaring fuel prices, following pressure from the United States.

According to Reuters as cited by the sources familiar to the matter, the French plan involves European nations releasing 50 million barrels of diesel, alongside International Energy Agency (IEA) members releasing 50 million barrels of crude oil.

The discussion related to stock release which took place by phone call on Friday comes after the Trump administration pressurized major European countries including France and Germany to draw down 100 million barrels of diesel within a 20-day window to avert a potential US diesel export ban ahead of the November 3 midterm elections.

As per the sources, the Trump administration is considering a ban on diesel exports prior to midterm elections to ease the supply restrictions.

During discussions, EU governments emphasized that any agreement to release additional diesel reserves must include a firm US commitment to refrain from a unilateral diesel export ban.

G7 leaders, under France's current presidency, are expected to hold a call Friday afternoon to map out their next steps.

In March, the 32-member International Energy Agency agreed to release a historic 400 million barrels of strategic oil reserves to tackle supply disruptions caused by the Iran conflict.

Moreover, Russian export ban following refinery damage in Ukraine and suspended fuel exports by Chinese refiners.