Key facts
- France and Germany will release diesel stocks already committed in March, not new ones.
- The G7 pledged to release a substantial amount of diesel to lower global prices.
- Europe's promise to release millions of barrels of diesel to the U.S. may be less generous than it sounded.
- The release will draw from a wider European commitment to release 100 million barrels, brokered by the IEA in March.
- Germany has released 600,000 tons of oil, diesel, and jet fuel out of a 2.65 million-ton commitment.
- France indicated it will contribute 8 million barrels left under its March commitment.
France and Germany stated on Wednesday that their commitment to release diesel stocks to the U.S. would utilize already pledged reserves, not new ones. This suggests Europe's promise to President Donald Trump to unlock millions of barrels of transport fuel may be less substantial than initially indicated.
In a closed-door meeting, European countries acknowledged that the release would not include new barrels of diesel but rather barrels already pledged under a wider European commitment to release 100 million barrels, two-thirds of which were refined products. This deal was brokered by the International Energy Agency in March.
Germany has released 600,000 tons of oil, diesel, and jet fuel out of a promised 2.65 million tons. France has indicated privately that it still has 8 million barrels left under the March commitment, which it will contribute under the latest push. The countries have been criticized by the Trump administration for not contributing their full share committed in March, with Germany attributing that to weak demand.
An extraordinary meeting of the IEA was scheduled to take place amid confusion from other member countries over commitments and concerns about depleting reserves. A spokeswoman for Germany's economy and energy ministry confirmed that Berlin would be releasing no new barrels, stating that obligations are to be implemented through a coordinated release of 100 million barrels via the IEA.