The price of diesel in Europe fell sharply on Friday as European countries considered releasing 50 million barrels of diesel to the market after United States President Donald Trump threatened to buy fuel exports.
Mr Trump had last week said he would back proposals to halt American diesel exports in order to reduce pump prices in the United States before reiterating the same position on Thursday.
“We may do that. They have some diesel,” Mr Trump stated when asked whether he would ask European countries to release some of their own diesel reserves.
As countries began deliberating the possibility of releasing fuel reserves, Europe’s benchmark diesel futures contract fell as low as $1,364 a tonne, equivalent to about $185 per barrel, marking a six per cent decline.
Citing two diplomats, the Financial Times reported that Mr Trump requested for Europe to release 100 million barrels of diesel to the markets but the European Union is proposing a counteroffer of 50 million barrels.
Meanwhile, the members of the International Energy Agency would provide the remaining 50 million barrels under the proposal.
The Times also reported that European leaders were expected to make a decision following a G7 leaders’ meeting on Friday afternoon. However, it remains unclear how many barrels of diesel each country would release.