Europe Taps Diesel Reserves as Iran's Threats Fall On Deaf Ears

Oil prices dipped slightly on Friday as Europe's decision to tap diesel reserves and release an additional 50 million barrels over a 20-day period was welcomed by traders, while Iran's threats of violence were largely ignored.

The European Union countries agreed to the French proposal to release diesel stockpiles after a request from U.S. President Donald Trump, which led to Brent settling down 6 cents at $102.25 per barrel and West Texas Intermediate (WTI) settling down $1.76 at $91.11 per barrel.

According to Michael Lynch, distinguished fellow at the Energy Policy Research Foundation, this diesel release might mean less exports of diesel from the U.S., which could lower prices by 25-50 cents per gallon after a few weeks.