Oil slumps on reports of potential European fuel reserve release

Oil prices fell sharply on Friday, extending earlier losses after reports that Europe could release diesel and crude reserves to ease a global supply shortage.

Brent crude futures (CO1:COM) slipped 2.8% to $99.46 per barrel, while U.S. West Texas Intermediate (CL1:COM) futures fell 3.5% to $89.66.

The drop comes after Reuters reported that European Union member states were discussing a French proposal to release additional diesel reserves following pressure from the Trump administration.

The report said France had proposed that EU nations release 50 million barrels of diesel and International Energy Agency members release 50 million barrels of crude oil.

The EU is holding crisis talks on Friday to discuss a coordinated response to soaring diesel prices after U.S. Treasury Secretary Scott Bessent called on European countries to urgently release some of the continent’s reserves.

In a social media post, Bessent said Thursday that America’s European partners “should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions.”

“American farmers, truckers, and businesses should not be left carrying the burden of a global diesel shortage.”

Speculation that President Trump is considering escalating strikes in Iran after the midterm elections has supported crude prices, and analysts increasingly believe that the conflict will continue after the new year.

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