U.S. Tells France and Germany to Release Diesel Stocks or Face Export Ban

The Trump administration has told France and Germany to draw down emergency diesel stocks or face a possible U.S. ban on diesel exports. The warning, reported Thursday by Reuters from three people close to the talks, is aimed at record American diesel prices ahead of the Nov. 3 midterms. No ban has been ordered.

A source in a European capital told Reuters the United States has asked the European Union to release 120 million barrels of diesel over the next six months. Politico, citing four officials in European and U.S. governments, reported that Energy Secretary Chris Wright circulated the same figure as a 180-day release. That is about 38 percent of the roughly 315 million barrels of diesel EU countries held in reserve as of June. France and Germany together hold about 35 percent of the bloc’s emergency gasoil and diesel stocks, OilPrice reported from the latest detailed Eurostat tables. The EU’s diesel reserves are estimated at about 39 million tons, more than two months of consumption.

Washington is particularly frustrated with Paris and Berlin. Reuters has previously reported that U.S. officials believe the two have not fully followed through on earlier commitments to release emergency oil and petroleum-product stocks.

“It is in Europe’s best interest to work with the United States as we pursue multiple pathways to boost the supply of refined products and lower costs for consumers,” a U.S. official told Reuters.

Wright made the public case Thursday on Fox News. “This is a time for a coordinated release of diesel stores as we go into harvest season and we go into winter heating oil season,” he said. “Now’s the time to bring more diesel to the market, and that diesel is available.” He said he was “highly confident” Europe would help, and that “I think we have some positive news coming.” A day earlier, in the Oval Office, he told reporters, “You will hear announcements from our friends in Europe about new diesel supplies that’ll come to the market that’ll meaningfully push diesel prices down.”

President Trump said Wednesday he is still weighing an export ban. “I’m thinking about it,” he told reporters. “I speak to Chris and Doug about it a lot,” referring to Wright and Interior Secretary Doug Burgum. He also said a ban “would have a negative impact on gasoline, so that would go up a little bit, and diesel would come down a little bit.”

Treasury Secretary Scott Bessent wrote on X that the United States released 172 million barrels of oil under a March agreement among International Energy Agency members. “America is doing its part,” Bessent wrote. “We look to our allies to match their commitments with action.” Trade Representative Jamieson Greer told Bloomberg Television he had spoken with his French counterpart. “Very good conversation,” Greer said. “I let him know that this is an idea that we’ve had in the U.S. We’d love to have a collaborative response to this.”

The European Commission, Germany, France, Italy, Britain, and Ireland held a call Thursday on a possible stock release, two EU officials told Reuters. The Commission’s energy task force, which includes all 27 member states, was set to discuss the situation again Friday morning. Germany’s economy ministry said the IEA has not asked Berlin to release stocks. A Commission spokesperson said any release would be agreed only through the IEA. France’s energy ministry declined to comment. An Elysee official said President Emmanuel Macron and Trump did not discuss diesel at their meeting on the sidelines of the U.N. General Assembly last week. Macron is convening a G7 video conference on fuel prices and coordination of reserve releases with the IEA.

The squeeze has several sources. The U.S.-Iran war, which began Feb. 28, has curtailed shipments through the Strait of Hormuz. Russia, the world’s second-largest diesel exporter, has extended its export ban through the end of October after Ukrainian strikes damaged refineries. Chinese refiners have suspended October fuel exports to rebuild domestic stocks. Europe banned Russian oil imports after the 2022 invasion of Ukraine and has since leaned harder on American barrels. Europe imports about 1.5 million barrels a day of diesel, with roughly a third coming from the United States, according to S&P Global. U.S. diesel exports hit a record 1.6 million barrels a day in August, Kpler data show.

U.S. on-highway diesel reached a record $6.529 a gallon in the Energy Information Administration’s survey for the week of Sept. 21. The week of Sept. 28 it fell 14.7 cents to $6.382, still about 70 percent above the year-earlier average. AAA had the national average above $6.50 in mid-September.

A U.S. export ban would leave Europe, a net importer, with fewer suppliers. Analysts told Reuters last month that a ban could raise world diesel prices sharply and would do little to ease U.S. pump prices if refiners cut runs once storage fills. The administration is offering the European drawdown as the alternative. Trump has not ordered the ban.