White House presses EU to release emergency diesel stockpiles
The push targets global diesel prices through EU inventories rather than new US export limits, sources say.
Published
The White House has asked the European Union to draw down its emergency diesel inventories, according to sources, in an effort to bring down diesel prices worldwide.
The request marks a shift toward pressuring global supply rather than restricting US exports. Last week, officials had floated softer, state-level options for easing diesel costs domestically. Days before that, on September 23, a White House official denied a Politico report that the administration was preparing a 90-day ban on diesel exports, Reuters reported. Energy Secretary Chris Wright said at the time that such a ban would not work and could push up gasoline and jet fuel prices, adding that the administration was instead discussing voluntary measures.
That denial followed a spike in diesel costs tied to supply disruptions from the wars in Iran and Ukraine, with US pump prices for diesel topping $6.50 a gallon, according to Reuters. European diesel prices rose 7% on the morning of September 23 after reports of the possible export ban first surfaced, The Primary reported. Separately, Roic News reported that as of September 23, US diesel stocks stood at 106.3 million barrels, 13% below the five-year average, with the diesel crack spread refiners earn on the fuel hitting a record $112.17 a barrel that day.
By turning to the EU instead of domestic export curbs, the administration is aiming at global prices without squeezing US refiners or reviving the disruption fears that briefly rattled markets last week. If the EU releases stockpiles, it would be a modest positive for diesel consumers and logistics firms and a slight drag on the wide refining margins refiners have enjoyed. Without confirmation that the EU will act, though, the near-term impact on prices remains limited, and the situation is best read as unchanged until inventories actually move.