US threatens Europe with diesel export ban

US threatens Europe with diesel export ban

Washington wants the EU to release 120 million barrels of emergency stocks or risk American export curbs amid ebbing supplies

The US is pressuring France and Germany to tap emergency diesel reserves to help bring down soaring global prices, and has threatened not to export the fuel if they refuse, Reuters has reported.
Washington wants the EU to release 120 million barrels over the next six months as US President Donald Trump seeks to reduce domestic fuel costs ahead of November’s midterm elections.
Diesel prices have surged to record highs in both the US and the EU. Average US prices topped $6.50 per gallon in the third week of September, up $2.60 from a year earlier, according to the US Energy Information Administration, while EU prices climbed to €2.23 per liter, European Commission data shows.
The US fuel crunch has become particularly severe in Texas, where Governor Greg Abbott declared a statewide disaster on Sunday over soaring diesel prices and supply disruptions. Some filling stations have run short of diesel, while tight supplies have forced others to ration fuel or raise prices sharply.
The order temporarily eased fuel and trucking restrictions, including allowing wider use of untaxed dyed diesel on public roads.
The US-Israeli war on Iran has disrupted Middle Eastern supplies through the Strait of Hormuz, while Russia, one of the world’s largest diesel exporters, has restricted shipments to protect domestic supplies after Ukrainian drone attacks damaged its refineries. China has also suspended October fuel exports to bolster domestic stocks.

Washington threatens EU with diesel export ban
Washington has stepped up pressure on Paris and Berlin, with the Trump administration particularly frustrated with France and Germany for failing to fully follow through on earlier commitments to release emergency oil and petroleum-product stocks, the outlet said on Thursday, citing people familiar with discussions.
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 US official told Reuters.
The threat comes as Trump said earlier this week that Washington was very seriously considering restricting US diesel exports to force down domestic prices ahead of the midterms.
 A ban could hit Europe particularly hard, given that the EU has mostly cut itself off from Russian fuel and become increasingly reliant on US supplies.
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Europe cornered by diesel crunch
European diesel imports already fell to a record low of around 1 million barrels per day in September, with seaborne shipments more than 25% below last year’s levels, according to Vortexa data. Russia, which accounted for around 9.5% of global diesel exports before the latest restrictions, has extended its export curbs through October.
The US supplied 41% of Europe’s diesel imports in September, shipping around 400,000 barrels per day, according to Vortexa. US diesel exports themselves remained close to record levels at around 1.6 million barrels per day during the month. Soaring fuel costs have already hit several European economies particularly hard, including Finland, Denmark, Greece and Germany, while France has reported shortages at some filling stations.
European refineries are already running at near-maximum capacity, according to the European Commission. Fuel distribution is also being squeezed by exceptionally low water levels on the Rhine caused by drought, restricting tanker shipments into Europe’s interior.
Read more In a bid to replace lost supplies, French President Emmanuel Macron earlier this month asked European Commission President Ursula von der Leyen to temporarily relax EU diesel-quality rules and increase the use of bio-components, a move that could boost output by up to 20%.
US Energy Secretary Chris Wright said on Thursday he was highly confident Europe would release more fuel