US Warns Europe: Release Emergency Diesel Supplies Or Face Export Ban

The refined products crisis remains unresolved as the Northern Hemisphere winter approaches. 

Speaking in the Oval Office on Wednesday, President Trump said he holds discussions “every day” about a potential diesel export ban, blaming Russia’s war in Ukraine for fueling the supply squeeze. His administration is now pressuring European governments to release emergency diesel inventories to contain further price surges and reduce the risk of an economic shock in the coming months. 

Reuters reports that the Trump administration has asked Germany and France to release emergency diesel inventories to help create a buffer against the supply squeeze in the industrial fuel or face a potential US diesel export ban.

The total request calls for the release of 120 million barrels of diesel over the next six months, according to a source in a European capital cited by the outlet. That would be equivalent to about 660,000 barrels a day of additional supply.

“It is in Europe’s best interest to work with the United States as we pursue multiple pathways to boost the supply of refined products and lower costs for consumers,” one source, a US official, told Reuters.

Trump warned yesterday in the Oval Office that an export ban would “have a negative impact on gasoline” prices but could lower diesel costs. He warned that Russia’s war with Ukraine is the main driver of soaring prices. Russia recently extended an export ban on the industrial fuel.

Goldman analysts Yulia Zhestkova Grigsby, Alexandra Paulus and Daan Struyven noted earlier this week that estimated “dark exports” have helped boost Persian Gulf oil exports to 23.3 million barrels a day over the past week, back to prewar levels. Still, refined product exports remain at just half of their 2025 averages.

Goldman energy analyst Nikhil Bhandari warned last month that the refining crisis would persist through 2027 and prolong the pain at the pump.

Elevated diesel prices across the West risk triggering an economic shock, according to Bloomberg Intelligence senior commodity strategist Mike McGlone. He said that shock could be similar to what happened during the 2008 energy crisis.

Perhaps the first domino has already fallen: trucking companies with the weakest balance sheets fall first.

• 16 U.S. Trucking Companies File For Bankruptcy In Less Than A Month As Diesel Prices Soar

Bloomberg commodities expert Javier Blas wrote earlier on X, “Europe is finding itself sandwiched from all sides when it comes to refined products … diesel in particular (some of the damage is due to the US-Iran war; some is due to Ukraine-Russia; some is due to China, and a lot is self-inflicted). Policy response: Head in the sand.”

US Energy Secretary Chris Wright said Wednesday that the Trump administration expects announcements from Europe very soon about tapping emergency diesel supplies.