The U.S. is reportedly threatening to ban exports of diesel fuel to parts of Europe, unless countries like Germany and France release more of their diesel reserves in an effort to tamp down spiking prices ahead of the midterm elections, according to reports from Reuters and Politico.
This also comes after U.S. President Donald Trump said last week that his administration was considering a temporary export ban on all U.S. diesel fuel. The idea faced large pushback from industry representatives and energy economists as posing long-term financial risks to the economy, even if they were to provide some short-term price relief.
The European Commission, Germany, France, Italy, Ireland and Britain were holding a call on Thursday to discuss the possible need to release diesel stocks, an EU official told Reuters.
The U.S. administration has been particularly frustrated with France and Germany, which U.S. officials believe have not fully followed through on earlier commitments to release emergency oil and petroleum stocks, Reuters has reported previously.
“It is in Europe’s best interest to work with the United States as we pursue multiple pathways to boost the supply of refined products and lower costs for consumers,” one of the sources, a U.S. official, told Reuters.
A second source, based in a European capital, said that the U.S. has asked the EU to release 120 million barrels of diesel in the next six months.
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U.S. Energy Secretary Chris Wright told reporters on Wednesday that the U.S. administration expected announcements soon from Europe about new diesel supplies.
“We’ve lost some diesel exports from the Middle East, although we’re restoring those, and we’ve lost diesel exports from China,” he said. “So that’s a lot of interruptions.”
Germany’s economy ministry did not respond immediately to a Reuters request for comment. France’s energy ministry declined to comment.
Diesel prices have been skyrocketing worldwide along with many other oil, gas and energy commodities amid ongoing geopolitical conflicts.
Diesel fuel is vital for communities and economies alike, as it’s commonly used across industrial, agricultural and logistics sectors to fuel trucks and tractors, ships and trains, as well as for power generation in remote areas.
The U.S. is also the world’s largest producer and supplier of diesel fuel, followed by Russia and Saudi Arabia, according to the International Energy Agency.
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Exports of oil and other products have been strained as the war in the Middle East, sparked in February by a joint attack between the U.S. and Israel on Iran, has led to a near complete blockage of the Strait of Hormuz shipping channel.
The war in Ukraine has also limited diesel fuel exports from Russia and other nations, and is adding to supply constraints worldwide.
Although releasing more barrels of oil from strategic reserves into the global supply could help bring down prices for gas, diesel and other by-products, that relief may only be a short-term fix. That’s because those stockpiles eventually need to be replenished, which means increasing demand for oil over the long term.
When global oil supplies are limited and demand remains high, prices typically rise, and diesel prices have been hovering around record levels for several weeks. When changes are expected for supply and demand, like future policy changes, prices can also fluctuate quickly in response.
Both regular gas and diesel prices have been skyrocketing worldwide since the war with Iran began earlier this year, and Canadian consumers and businesses have been feeling it in their wallets and budgets.
The national average price for diesel fuel in the U.S. was US$6.39 per gallon, according to the American Automobile Association, up from $3.71 a year ago and after hitting an all-time high of $6.53 last week.
In Canada, the national average for diesel fuel is hovering around C$2.60 per litre, according to Natural Resources Canada, up from $2.35 last month, and about $1.54 a year ago.
The Canadian national average price for regular gas is about $1.75 per litre, according to the Canadian Automobile Association, up from $1.71 last month and $1.35 a year ago.
– with a file from Reuters
I have a hint for Trump. It’s your war of choice with Iran stupid!
Negotiate a deal with Iran and end stupid’s war.
Both sides will have to compromise.
Unfortunately, the word compromise is not in “Sleepy” Don’s vocabulary.
His narcissistic ego has to have it all or nothing.
He’s not a negotiator, he’s an extortionist.
More threats by Trump in an attempt to fix the problem he caused. What an idiot Americans elected as their president!
Trump is desperate. Sad. He got himself stuck, already losing billions of American dollars on a war with no end in sight and a $40 trillion debt that the Americans will have to pay off. The worse part is Trump is going to lose the Iranian war. No way out.
I’m sorry, you tried to deny a valid question to your reporting.
If Crista Pike is receiving “life saving” treatment, I am going to call that the opposite of the purpose of an execution.
I see another Canadian hitched a ride with NASA. You’re welcome.
Trump wipes his ass with Canadian money !
Who really cares what Trump does or doesn’t do. I don’t understand why people give him the time of day. He isn’t the leader of the world he is the leader of a country.
Liberal/NDP Toronto supports the belief that they can stop global weather when it is routinely affected by volcanic activity, magma flows deeper than anyone has ever been are allegedly extending the day currently, but banning 15-20% of gas powered vehicles will stop it all.
What they don’t know, is how much of Toronto’s wealth, derived from the stock market within its borders, depends on oil and gas despite such things as their feelings.
They make up dumb terms like “excess profit” while never denying a raise in their life that resulted from this evil “excess profit”.
Pure entitlement. They think a raise is all about them and not the organization attempting to reduce the tax burden that obviously, they need to refine as governments dream up new ways to tax their profits that obviously impact the economy in no way at all.
They cheat single use plastics bans without any consideration or thought for the facts that plastics are made from otherwise useless byproducts they morally object to while depending on them for every facet of their existence and basic survival.
Look at all the irrelevant, triggerred Canadians 😂😂😂
So trump can bully the EU to release diesel while he ponders stopping all diesel leaving the US. A real piece of work
The bully is at it again! Stand up to the bully and don’t ship anything to the US and see just how much Trump “doesn’t need anything” from anyone! Still thinks he rules the world! LOL
Relax!! Trump is having a Hissy fit because he didn’t have his Nap today! He has all the oil & diesel in the world that he is trying to steal from Venezuela. Just hasn’t perfected a way to get it to USA. Just wait until after the mid terms & the Democrats are in power & then Orgy Orange cry & wine & sue everyone for his Mess! Ha! Hey! You guys elected it!!
Liberals are sitting around contemptuously feeling like the US owes us as it’s biggest trading partner, but we aren’t that anymore. Mexico took us over in 2023 and continue to do so despite big mean Trump.
Dear fake yank and clear Liberal suffering from overconfidence…
Canadian homes are filled with American products. Love is not quite the right word, but let’s focus on your; I’m so Liberal I don’t understand patriotism tangent.
The reason we rely on the US and Carney’s creativity, inspiration, ambition and strategy can do no more than aim to rely on a different group of people if not Americans, is because we allow our affluence to make us sedentary and lazy.
We literally live in a country where Canadians are supporting what they themselves claim to believe stupid, irrational and self destructive behavior because they can afford to pay a little more.
Right? That’s why cell phone, internet and cable services have always sucked in Canada. We know it sucks too. But meh, we can afford it, so, the financial assault continues unabated.
Tell me former CIBC CEO and now Telus CEO Victor Dodig is not vying for the telecommunications executive retirement plan known as sitting on the board or chairing the utterly useless CRTC?
Pages of commentary expose Canadians willing to go down a trade war rabbit hole simply because they have more affluence than brains.
What they all fail to realize is that affluence is due to the resources and development they spent the past decade attacking.
Trump self inflicted wound blaming others. Him and his supporters of engalican (MAGA) minions are the reason the once Great US is in decline.
We need a meteor to hit us and destroy our planet….
Not gonna lie…I am getting tired of elitists ruining my end of the economy so they can have a public spat and virtue signal their contempt for Trump while claiming not to be populist predators yourself.
@Lazy Canadian. You also forgot Poilievre’s love of all things american
@ lazy Canadian you forgot he also enjoys kentucky bourbon.
@Lazy American. Maybe focus on your own country.
Why did Carney go to Harvard? Why do Carney kids live in the USA?why does Carney invest in America?
The world has to pay for what Trump caused.
Trump is like a lot of commenters on here. Won’t discuss, denigrates everyone and doesn’t understand complex things like foreign relations. Wonder if he will call the Europeans communists now 🤣.
Trump denigrates and insults other countries and their leaders, creates a huge economic, political and social mess by attacking Iran and now whines and cries when other countries won’t help him out.
“We don’t need anything from …”
Stable effing genius.
There it is, yet another bullsh_t move by the orange guy to appear ‘tough’, lol! What a f’n joke!
Idiots like Mike want to pay more for everything because they have TDS.
France and Germany are literally hoarding fuel stocks while expecting western fuel to keep flowing. This after they straight up agreed they would release stocks that are being held in reserve for just such an occasion.
I too hope that the EU tells Trump no though.. but for very different reasons. Shut the taps off and north america will have the benefit of the extra fuel.
I hope they tell Trump to pound sand.