Hassett says US and Europe are talking on diesel, hopeful for news soon
Treasury Secretary Kevin Hassett says a European reserve release would have a massive impact, as EU states meet to weigh a response to US pressure
Published
Treasury Secretary Kevin Hassett said Friday the administration has been talking with Europe about diesel, that a European release would have a massive impact, and that he is hopeful to have news on the matter soon.
The talks follow a request from Energy Secretary Chris Wright that the US ask Europe to release strategic diesel reserves, which came after weeks of internal debate over a possible 90-day US diesel export ban floated on September 23.
EU member states met with the European Commission on Friday to discuss a coordinated response to soaring fuel prices, according to Gulf News. Energy Commissioner Dan Jorgensen said ahead of the meeting that another emergency reserve release remained an option, and that the EU is discussing with other members of the International Energy Agency when the right time would be, according to yourNEWS Media. Reuters, cited by BNN Bloomberg, reported that EU countries discussed on a Friday call making any new release conditional on a US commitment not to impose a unilateral export ban. Accounts of the scale of the US request differ: one Reuters source cited by BNN Bloomberg said Washington wants France and Germany to release 100 million barrels of diesel within 20 days, while a separate Reuters report cited by yourNEWS put the ask at about 120 million barrels over six months, noting France and Germany together hold about 35% of the bloc's total reserves. France's presidency told France 24 that no such demand was made when President Macron met President Trump at the UN General Assembly last week, and said Macron plans to convene a G7 video call on fuel price measures, including coordinated reserve releases. Reuters, via BNN Bloomberg, reported G7 leaders may hold a call Friday afternoon on next steps.
Hassett's description of a European release as having a massive impact confirms that Washington is actively negotiating the reserve drawdown, shifting the question from whether the US will seek one to when terms get finalized. That keeps the diesel tightness transferred across the Atlantic rather than resolved, with Europe already sourcing about half its diesel from the US and facing a difficult winter. Diesel cracks and refined product spreads remain the pressure point, since any release still depends on European governments agreeing to draw down reserves they need themselves.