Europe Diesel Reserves: Shocking $6.50 Price Revealed
Europe diesel reserves are the latest target of the Trump administration, which is urging allies to release more fuel as U.S. prices hit records. Treasury Secretary Scott Bessent said Thursday that European partners should “accelerate delivery” on existing commitments and make more supplies available immediately.
What the U.S. wants from Europe diesel reserves
U.S. diesel averaged about $6.50 a gallon in late September, a record, according to AAA figures cited by CNBC. The Iran war has disrupted fuel supplies, and CNBC also pointed to Russia’s invasion of Ukraine as a factor.
Bessent said on social media that America is doing its part and looks to allies to match their commitments with action. Al Jazeera reported that France and Germany hold more than one-third of the European Union’s strategic diesel reserves. Italy has also been named among countries holding stocks. The outlet said Germany and Spain previously saw no strong case for releasing more.
The U.S. supplied about half of the EU’s diesel imports in August, according to the International Energy Agency. That reliance helps explain why Europe diesel reserves have become a focus in Washington.
Trump weighs a diesel export ban
President Trump said Thursday in Texas that he “may” ask European countries to tap Europe diesel reserves. A day earlier he said he was still thinking about banning U.S. diesel exports, while acknowledging the move could hurt gasoline prices. The idea has drawn pushback from the U.S. energy industry and concern in Europe, according to CNBC.
EU trade chief Maros Sefcovic raised diesel supplies with U.S. Trade Representative Jamieson Greer at a G20 trade ministers meeting in Milwaukee. Sefcovic said Europe has every interest in working together to lower prices and warned that an export ban would hurt Europe’s economy, Al Jazeera reported.
Walt Chancellor, an analyst at Macquarie Group, called the issue “a global energy problem” rather than only a diesel problem. Oil exports through the Strait of Hormuz returned to prewar levels this week after disruptions that followed U.S. and Israeli military action against Iran in late February.
Why fuel costs matter at home
Diesel powers trucking, farming and manufacturing, so higher prices ripple into the cost of goods. Drivers are already feeling it at the pump, as we covered in our look at gas prices and budget road trips. Rising fuel costs have also shown up in travel, including airline fares.
The fuel fight comes about a month before the midterm elections. Trump has not announced a decision on an export ban. Any release from Europe diesel reserves would ease supply but shrink a buffer against future disruptions.