Trump Announces Europe Will Release Massive Diesel Reserves as Fuel Prices Begin to Fall
President Trump announced Friday that European countries have agreed to release a major amount of diesel and other petroleum products from emergency reserves as governments work to bring down fuel prices following months of global supply disruptions.
The agreement calls for G7 countries and their partners to release 100 million barrels of oil and refined products over the next four months. A substantial portion of the diesel supply is expected to be released during the first 20 days in an effort to provide more immediate relief to strained markets.
Trump announced the agreement following talks with European leaders, including French President Emmanuel Macron. The president said the release would begin immediately after his administration spent days pressing European governments to make more of their emergency fuel reserves available.
The agreement followed an emergency G7 meeting focused on global energy supplies and rising fuel costs. Macron, whose country currently holds the G7 presidency, helped lead the discussions as governments sought a coordinated response to tight supplies.
The additional fuel is expected to be released in coordination with the International Energy Agency. Participating countries also agreed not to restrict the exchange of energy and petroleum products between partner nations while the coordinated release is underway.
Fuel markets responded to news of the plan, with both American and European diesel futures falling. Crude oil prices also moved lower as traders assessed the prospect of additional supplies reaching the global market.
Diesel prices in the United States have already begun retreating from their September peak. The national average stood at approximately $6.37 per gallon Friday, about 15 cents below the record reached on Sept. 22. Regular gasoline prices have also declined from their early September highs.
Global fuel markets have faced significant pressure from disruptions connected to the war with Iran, reduced Russian exports and tighter supplies of refined petroleum products. Europe has become increasingly dependent on American fuel since banning Russian petroleum imports following Russia’s invasion of Ukraine.
The Trump administration has considered several additional steps to reduce diesel prices in the United States. One proposal under discussion could temporarily expand the use of red-dyed diesel, which is normally restricted to off-road equipment because it is exempt from federal highway taxes. Other possible tax changes have also been discussed.
Trump had also considered restricting American diesel exports if European countries did not contribute more of their own reserves. The coordinated international release could reduce pressure for such a move while increasing the amount of fuel available to the global market.
The agreement comes as fuel costs remain a major concern for American households, farmers, trucking companies and businesses heading into the November midterm elections. The administration is hoping the additional supply, combined with the recent decline in oil and fuel prices, will provide further relief in the weeks ahead.