Total CEO says Europe would tap reserves if US bans diesel exports
Total's chief executive says a US diesel export ban would force Europe to release strategic reserves, and calls the idea a bad one.
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Total's chief executive says a US ban on diesel exports would push Europe to release oil from its strategic reserves. He has separately called the proposed ban a bad idea.
The ban itself has not been enacted. Total's comments describe what Europe would need to do if Washington moves ahead with it, not a response to a measure already in force.
The remarks come as tension over Middle East oil flows continues to weigh on the market. Total's chief executive has put the volume of oil moving through the Strait of Hormuz at about 10 million barrels a day, a lower figure than one cited by a US official. Crude futures have jumped more than 4% at one point to a session high of $96.44 a barrel after Iran's delegation in New York ruled out further talks.
The comment on reserves reads as positioning ahead of a possible policy shift rather than a sign that supply conditions have changed. Europe's readiness to draw on its reserves shows preparedness for disruption, but it does not alter the basic arithmetic: a US diesel ban would still tighten global markets, especially if Iran talks stay stalled and the geopolitical risk premium on oil persists. That leaves the outlook for oil prices largely where it was before Total's chief executive spoke.