US to Europe: We'll Send Diesel on One Condition

Washington is turning up the heat on Europe's diesel reserves, Reuters reports. Citing three sources, the outlet says the Trump administration has warned France and Germany to tap their emergency diesel stocks to help cool global fuel prices—or risk a US ban on diesel exports. The move, tied to efforts to lower US pump prices ahead of November's midterms, marks a sharper phase in US-Europe energy tensions. An EU official confirmed that the European Commission and several member states, including Germany and France, held a call Thursday on whether to release diesel reserves.

According to one European source, Washington wants the EU to put as much as 120 million barrels of diesel on the market over the next six months. US officials have been irritated that Berlin and Paris, in their view, have not fully delivered on earlier stock-release pledges. Europe, already more reliant on US fuel after cutting off Russian imports and losing Middle Eastern supplies, offered little public pushback. If the Trump administration does follow through with a diesel export ban, it could mean a serious blow to Texas' economy, reports the Texas Tribune. Texas refineries sell 6.3 million barrels of diesel each day, with roughly a quarter heading overseas. If companies are unable to sell their products, they could downsize operations, leading to less supply and more price increases, insiders say.