US President Donald Trump said Europe has agreed to release a “massive amount” of heavily stocked diesel reserves, as governments respond to tightening fuel supplies across major markets.
The development comes a day after, China moved to restrict exports of diesel, gasoline and jet fuel.
Further, G7 countries on Friday (2 October) agreed to release from their reserves over four months through the International Energy Agency.
The developments underscore a growing pressure on global fuel markets as disruptions linked to the Middle East and Eastern Europe coincide with tighter refinery supplies and governments become more focused on securing domestic inventories.
The G7 also agreed to “refrain from export restrictions on energy” among its members and called on other producers to avoid measures that could exacerbate market tensions.
The developments come as global fuel markets contend with disruptions linked to conflicts in the Middle East and Eastern Europe, reduced refined-product availability and growing pressure on governments to protect domestic energy supplies.
Trump says Europe will release diesel reserves
“Europe has just agreed to release a massive amount of their heavily stocked Diesel [Oil],” Trump said in a Truth Social post. “The process will begin immediately.”
The US government has also considered measures to increase domestic diesel supplies, including possible restrictions on exports. Average US diesel prices reached a record $6.50 a gallon late last month, according to AAA.
US Treasury Secretary Scott Bessent said America’s European partners “should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions.”
“America is doing its part. We look to our allies to match their commitments with action,” he added.
China tightens fuel exports
China has separately restricted exports of refined fuels, with refiners stopping or reducing October shipments of and jet fuel to preserve domestic stocks.
Tom Reed, a China oil-policy specialist at Argus, estimated China’s refined-product exports could fall to 480,000 barrels a day in October, from an earlier forecast of 750,000 barrels a day. After remaining September quotas are used, exports could fall to about 300,000 barrels a day in November unless Beijing changes course.
The duration of the restrictions remains uncertain. Kpler analyst Muyu Xu said it was unclear whether Beijing had imposed a lasting halt or delayed approvals because of China’s week-long national holiday.
China is also seeking to protect domestic supplies as diesel demand rises during the autumn harvest and crude prices remain elevated.
G7 agrees to release 100 million barrels
Separately, G7 countries agreed to release 100 million barrels of diesel and crude oil from reserves over four months through the IEA.
The release will be front-loaded, with a substantial diesel release within the first 20 days.
The G7 also agreed to refrain from energy export restrictions among members and called on other producers to avoid measures that could worsen market tensions.
“Our citizens’ concerns about energy prices remain a top priority,” the leaders said, adding that they would “monitor developments closely and stand ready to adjust measures as needed.”
Why diesel markets are under pressure
Several disruptions are tightening diesel supplies simultaneously.
Russia has renewed a diesel export ban after Ukrainian drone attacks damaged refineries. In India, a refinery fire prompted its owner to halt some refined-product exports, including diesel, to prioritise domestic customers.
China’s decision to retain more fuel at home adds another major exporter to the list of countries reducing international supplies.
Diesel prices in Singapore rose 5% across Wednesday and Thursday following China’s export restrictions, even as crude prices fell almost 10%. Prices later returned to around $170 a barrel after European reserve-release discussions.
Jet fuel prices have also risen in , potentially increasing airline costs and fares.
Europe faces supply risks
Europe is particularly exposed to changes in global diesel flows. The US supplied around half of EU diesel imports in August, according to the IEA.
Trump has also floated possible restrictions as his administration faces pressure to lower fuel costs for truckers before the November midterm elections.
A French proposal called for EU nations to release 50 million barrels of diesel, while IEA members could release another 50 million barrels of crude.
Refined fuel flows through Hormuz remain below pre-war levels
The disruption is particularly severe for refined fuels. Refined petroleum product flows through the Strait of Hormuz were running at about 677,000 barrels a day, compared with roughly 3.6 million barrels a day before the war, according to recent estimates.
Crude flows have recovered more strongly, highlighting the difference between crude availability and the availability of fuels such as diesel. That gap has become more important as China restricts exports and other producers face refinery disruptions.
The G7’s reserve release is therefore aimed not only at adding crude to the market but also at supplying refined products, with a substantial amount of diesel scheduled to be released within the first 20 days. The group has also called for countries to increase refined-product output where possible.
The immediate effect has already been visible in oil markets. Following news of the G7 release, Brent crude fell more than 3%, while US WTI dropped more than 4% during Friday trading.