European Diesel Release Expected to Have Limited Impact on US Prices

The European Union has agreed to release up to 100 million barrels of diesel oil from its reserves, following President Trump's demand. The move is intended to help ease prices in Europe, which have been near $8 a gallon due to disruptions caused by the war in Iran and Ukrainian attacks on Russian refineries.

However, experts say that this release will likely have little impact on US diesel prices, which could be reduced by 'at most a few pennies' according to Joe Adamski, managing director of ProcureAbility. The US produces the majority of its own diesel fuel, and the global market is expected to see some benefit from the release, but it would not significantly lower prices.

The International Energy Agency will coordinate the release, which is equivalent to just one day's worth of global oil demand. Trump has also proposed a ban on diesel exports, but this idea has been taken off the table with the G7 agreement.