European Leaders Agree to Release Diesel Reserves Amid US Pressure
Oil prices dropped on Friday after European leaders agreed to release diesel from their reserves in response to US President Donald Trump's request. The move is aimed at lowering fuel prices and reducing the need for imported American diesel.
Brent crude oil futures fell by $1.80, or 1.76%, to $100.50 a barrel, while West Texas Intermediate (WTI) dropped $2.02, or 2.18%, to $90.85 a barrel. For the week, Brent was down about 2.84% with WTI around 1.54% lower.
The decision to release diesel stockpiles comes after Trump proposed banning US diesel exports in response to Europe's request for more fuel. European Union countries agreed to France's proposal to release an additional 50 million barrels of diesel, and for International Energy Agency members to release 50 million barrels of crude oil.
Phil Flynn, senior analyst with the Price Futures Group, said that Europe is feeling vulnerable and would be one of the areas to suffer most if a US export ban on diesel was implemented. Analysts at Barclays raised their fourth-quarter Brent forecast by $20 a barrel to $115 and lifted their 2026 forecast to $100 a barrel.