Oil Prices Plummet as EU Considers Massive Diesel Stock Release
Oil prices declined sharply on Friday, extending losses from earlier in the session. The potential release of additional diesel and crude stocks to ease a global supply shortage was cited as the reason for the drop. International benchmark Brent crude futures with December expiry traded down 2.5% at $99.78 per barrel, while U.S. West Texas Intermediate futures with November expiry fell 3.7% to $89.42.
The reports of a potential stock release come after Reuters cited a single unnamed source familiar with details of the discussion. France had proposed that EU nations release 50 million barrels of diesel and International Energy Agency members release 50 million barrels of crude oil, according to the report. However, CNBC could not independently verify the report.
The EU is holding crisis talks on Friday to discuss a coordinated response to soaring diesel prices. U.S. Treasury Secretary Scott Bessent called on European countries to urgently release some of the continent's reserves, stating that 'American farmers, truckers, and businesses should not be left carrying the burden of a global diesel shortage.'