European Union countries discussed a French proposal on Friday to release additional diesel from strategic reserves, in response to U.S. pressure on European countries to increase supplies to the market in an effort to curb rising fuel prices, according to a source familiar with the matter who spoke to Reuters.
The source said EU governments discussed the French proposal during a conference call. Under the plan, European countries would release 50 million barrels of diesel, while member states of the International Energy Agency would release 50 million barrels of crude oil.
The countries believe any agreement to release additional diesel reserves should include a U.S. commitment to refrain from imposing unilateral restrictions on diesel exports, the source added.
G7 leaders may hold a conference call later on Friday afternoon to discuss next steps and coordinate measures related to energy prices and supplies, the source said.
French President Emmanuel Macron held separate calls on Thursday with U.S. President Donald Trump and the Canadian prime minister to discuss the global energy situation, the need for joint action to address rising fuel prices, and ensuring supplies of refined petroleum products.
Sources at the Élysée Palace said France plans to contact G7 leaders to coordinate measures concerning prices and supplies. Macron said G7 countries have a shared interest in coordinated action without imposing export restrictions.
Brent and U.S. crude futures fell following reports that Europe could release diesel and oil from its reserves.
Source: Reuters
