Global oil prices extended their declines on Friday morning following reports that European nations are considering releasing strategic diesel and crude oil reserves to alleviate a tightening global supply. International benchmark Brent crude futures with December expiry traded down 2.5% to $99.51 per barrel, slipping back below the $100 mark, while U.S. West Texas Intermediate (WTI) futures with November expiry dropped more sharply, falling 3.6% to $89.47.
The sell-off came shortly after Reuters reported that European Union member states were discussing a French proposal to release additional diesel reserves. According to the report, which cited an unnamed source familiar with the discussions, France had suggested that EU countries release 50 million barrels of diesel, alongside a commitment from International Energy Agency (IEA) members to release 50 million barrels of crude oil.
European Union officials held crisis talks on Friday to coordinate a response to soaring diesel prices, a move driven in part by intense pressure from the Trump administration. U.S. Treasury Secretary Scott Bessent urged European allies on Thursday to take immediate action, stating that American farmers, truckers, and businesses should not bear the burden of the global diesel shortage.
In a social media post, Bessent wrote that America’s European partners “should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions.”
CNBC has not been able to independently verify the details of the French proposal. A spokesperson for the French government and representatives for the IEA were not immediately available for comment.
Releasing reserves helps short term, but does it address the root supply issues? Seems like a band-aid on a deep wound.
Down to ninety-nine? Glad I didn’t panic buy last week. Hope this dip lasts longer than a weekend.