The EU and US discuss releasing diesel reserves to reduce prices

European Trade Commissioner Maros Sefcovic and US Trade Representative Jamieson Greer discussed the diesel shortage and rising prices on Thursday at the G20 Trade Ministers’ Meeting in Milwaukee. Sefcovic called for a coordinated approach between Europe and the United States, warning that any restriction on US exports would negatively affect the European economy.

Greer said Washington had asked several European countries, including Germany and France, to release diesel from emergency reserves to curb global prices. He confirmed that he had discussed the proposal with his French counterpart and stressed that the US wants a collaborative response.

The Trump administration is considering banning US diesel exports in an attempt to lower domestic prices ahead of the November elections. US Energy Secretary Chris Wright cited the loss of supplies from the Middle East and China.

France intends to convene a videoconference of G7 leaders to coordinate measures, in cooperation with the International Energy Agency. Europe is becoming increasingly dependent on US fuel following sanctions on Russian imports and disruptions to supplies from the Middle East.