EU Agrees to Release Diesel Reserves Amid Energy Market Concerns
Oil prices settled lower after European leaders agreed to US President Donald Trump's request to release diesel reserves, reducing fuel imports from the US. Brent crude futures finished down $0.06 (0.06%) at $102.25 a barrel, while WTI fell $1.76 (1.9%) to $91.11 per barrel.
European Union countries agreed to France's proposal to release 50 million barrels of diesel and 50 million barrels of crude oil from International Energy Agency members' reserves. The diesel volumes will be released over a 20-day period, according to sources familiar with the discussions.
French President Emmanuel Macron chaired a videoconference with G7 leaders on Friday, but it's unclear if G7 countries have agreed to France's proposal on fuel releases. Analysts note that refined product supply is now the main stress in the energy market, due to reduced refinery capacity and output across the Middle East and Russia.
Other factors influencing oil markets include the US-Iran tensions and the upcoming midterm elections. Prices had settled higher earlier in the week after Chinese refiners suspended oil product exports for October to preserve domestic stocks.