White House Seeks 350 Million-Barrel European Diesel Release as US Shortage Fears Grow
Updated
Updated · POLITICO · Sep 29
White House Seeks 350 Million-Barrel European Diesel Release as US Shortage Fears Grow
3 articles · Updated · POLITICO · Sep 29
Summary
Washington is asking Europe to release diesel from strategic reserves and help coordinate drawdowns from private stockpiles to ease U.S. shortage fears and blunt pressure for an export ban.
More than 350 million barrels of diesel are held in combined European commercial and government reserves, but analysts said any release would only trim the winter risk premium for a few months.
Germany signaled resistance, saying reserve releases would come only in the event of physical scarcity and not to stabilize prices, with no further drawdowns currently planned.
The White House is also weighing wider use of tax-exempt dyed diesel and state diesel-tax cuts, though some Republican lawmakers oppose tax suspensions because they would widen road-funding deficits.
The push follows EU efforts to head off Trump's proposed U.S. diesel export ban, a move that could hit Europe, which relies on the United States for about half its diesel imports.