Diesel: EU futures down 5 per cent; the EU is discussing further stock releases
Brent slips below $100
(Il Sole 24 Ore Radiocor) - European diesel futures have fallen sharply, dropping by more than 5 per cent to $1,377 per tonne following reports that the European Union is discussing a plan to release diesel stocks in response to pressure from the United States. Specifically, according to Reuters, European countries have discussed a French proposal to release further diesel stocks in response to pressure from the United States for European countries to put larger quantities of fuel onto the market in an attempt to curb the sharp rise in prices.
According to a source, the French proposal calls for European Union countries to release 50 million barrels of diesel and for members of the International Energy Agency to release 50 million barrels of crude oil. Furthermore, US President Donald Trump could ask Europe to release its diesel reserves in order to ease tensions in the supply chain and curb rising prices. “We could do that. They have diesel stocks,” said the White House occupant during a trip to Texas as part of the midterm election campaign. Trump’s comments come shortly after Treasury Secretary Scott Bessent, in a post on X, urged Europe to tap into its reserves “immediately”.
Against this backdrop, oil prices are falling significantly. Brent has dropped below the psychological threshold of $100 a barrel ($99.42), down 2.8 per cent, whilst WTI stands at $89.59 (-3.5 per cent). Gas prices are also down, trading at 71.93 euros per megawatt-hour in Amsterdam (-2.7 per cent).
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