Oil falls as Europe considers releasing emergency diesel stocks
What's the story
Oil prices witnessed a sharp decline on Friday morning, extending losses from earlier in the session. The fall comes after reports of a possible plan to release diesel and crude stocks to mitigate global supply shortages. International benchmark Brent crude futures for December delivery fell by 3.1% to $99.13 per barrel, while US West Texas Intermediate futures for November delivery dropped by 4% to $89.18 per barrel.
Proposal details
France proposed EU countries release diesel stocks
Under pressure from the Trump administration, EU member states are weighing a French proposal to release emergency fuel reserves, according to Reuters.
The plan would see EU nations release 50 million barrels of diesel while members of the International Energy Agency (IEA) will release 50 million barrels of crude oil.
This comes as the EU holds crisis talks on a coordinated response to rising diesel prices.s
Urgent call
US supplied nearly half of EU's diesel imports in August
In a social media post on Thursday, US Treasury Secretary Scott Bessent said America's European partners "should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions."
He stressed that "American farmers, truckers, and businesses should not be left carrying the burden of a global diesel shortage."
The US supplied nearly half of the EU's diesel imports in August, according to IEA data.