Europe Taps Diesel Reserves Amid Global Fuel Price Pressure
The price of oil settled lower on Friday after European leaders agreed to tap into diesel reserves at the request of US President Donald Trump. The move is aimed at lowering prices and reducing fuel imports from the US.
Brent crude futures finished down six cents, or 0.06 per cent, at $102.25 a barrel, while WTI crude fell by $1.76, or 1.90 per cent, to $91.11 a barrel.
The decision follows a proposal by France for European countries to release 50 million barrels of diesel and 50 million barrels of crude oil from International Energy Agency members. This move is seen as a response to the recent surge in fuel prices.
According to Phil Flynn, senior analyst with the Price Futures Group, 'Europe is feeling pretty vulnerable.' He noted that Europe would suffer significantly if the US were to impose an export ban on diesel.