Diesel prices slide 6% as Europe weighs fuel release following Trump threat

Diesel prices in Europe fell six per cent on Friday as European countries considered releasing millions of barrels of fuel following a threat by U.S. President Donald Trump to halt American diesel exports.

According to Peoples Gazette, Europe’s benchmark diesel futures contract dropped to $1,364 per tonne, equivalent to about $185 per barrel, as discussions over releasing reserves intensified.

Trump had backed proposals to halt U.S. diesel exports to reduce domestic pump prices.

“We may do that. They have some diesel,” Mr Trump said when asked whether Europe could release reserves.

The Financial Times reported that Trump requested Europe release 100 million barrels, while the European Union proposed 50 million barrels, with International Energy Agency members potentially supplying the remainder.

European leaders were expected to consider the proposal following a G7 meeting on Friday afternoon.

However, details about how much diesel individual European countries would contribute to the proposed release remained unclear as discussions continued among officials.