France's Diesel Reserve Release Plan Triggers Crude Price Plunge

France has proposed releasing 50 million barrels of diesel from European reserves to alleviate tight global supply and ease pressure on oil prices. The plan, which would also release an additional 50 million barrels of crude oil across International Energy Agency (IEA) member countries, comes as international crude prices plunged below key thresholds.

WTI crude broke below the $90 per barrel threshold, trading at $89.96 per barrel with a 3.0% intraday decline, while Brent crude fell to $99.95 per barrel, also below $100 per barrel. The news triggered a notable rebound in market risk appetite, with the Euro Stoxx 50 Index, France's CAC 40, and Germany's DAX all extending gains to over 1%. US stock index futures also climbed in tandem, with Nasdaq 100 futures up 0.9% and S&P 500 futures up 0.5%.

President Emmanuel Macron is pushing for coordinated action on energy supply, convening G7 leaders to discuss oil supply and pricing issues without imposing export restrictions. The US Treasury Secretary Scott Bessent has called on European countries to urgently release a portion of their reserves, citing the need for immediate additional supply to address ongoing supply disruptions.