On Thursday, U.S. Energy Secretary Chris Wright told Fox News that he was completely confident in Europe’s ability to help curb the sharp rise in global fuel prices by using emergency diesel fuel reserves, UNN reports, citing Reuters.
"I think positive news is ahead for us," Wright said.
According to three people familiar with the discussions, the Trump administration urged Germany and France to use emergency diesel fuel reserves to curb rising global prices, warning that the United States could ban diesel fuel exports if they refused.
"Europe can also help in this situation, and I am completely confident that it will. Now is the right time for a coordinated release of diesel fuel reserves, as we are approaching the harvest season and the heating season. It is time to put more diesel fuel on the market, and such reserves are available. I think positive news is ahead for us," Wright said.
Context
At the end of September, the European Commission said that the supply of oil and petroleum products in the EU remained stable for the time being, but diesel and jet fuel prices remained high due to a shortage on the global market. European refineries are operating near full capacity, while emergency reserves remain available in case of supply disruptions. The situation is also being affected by Europe’s dependence on imports of U.S. diesel following the abandonment of Russian petroleum products, as well as supply disruptions from the Middle East.
It should be noted that the largest reserves among EU countries are concentrated in France and Germany. According to Reuters estimates, together they control about 35% of the bloc’s relevant reserves.
Reminder
U.S. President Donald Trump once again blamed Ukraine for rising diesel fuel prices in the United States. He is convinced that diesel prices in the U.S. are rising because of Ukraine’s strikes on Russian refineries, rather than because of the blockade of the Strait of Hormuz.