Paris is weighing a coordinated release of emergency oil reserves, proposing a split of 50 million barrels of diesel and 50 million barrels of crude, according to three EU diplomats familiar with the discussions. The idea was raised during a Friday morning meeting between the European Commission and EU member states, shortly after President Emmanuel Macron spoke with US President Donald Trump about global energy markets.
The proposal has not yet been formally tabled, but it reflects growing transatlantic friction over how to respond to soaring diesel prices and supply concerns. One EU diplomat told European Pulse: "The US demanded 100 million barrels, but the EU is not accepting, and France proposed the 50 + 50 formula."
US pressure and the spectre of an export ban
Washington has been pressing European capitals to tap strategic reserves more aggressively, partly to temper fuel costs ahead of November's midterm elections. The Trump administration has also floated the possibility of banning US diesel exports, a move Macron has described as "catastrophic" for France, which is among the most exposed countries.
Earlier, the US energy secretary suggested the EU release 120 million barrels over three months as an alternative to such a ban. That figure exceeds what France is now proposing, and the gap highlights the difficulty of reaching a common position among the 27 member states plus the wider European energy community.
The distinction between diesel and crude is not trivial. Diesel can be injected directly into the market and reach consumers quickly, while crude must first be refined, adding weeks to the supply chain. A combined release would therefore aim to address both immediate price spikes and longer-term supply security.
Any release would require coordination through the International Energy Agency's emergency stock system, which involves not only EU countries but also other IEA members such as the UK, Norway, and Switzerland. The European Commission, after Friday's meeting, said the EU was "ready for collective action" but stressed that the IEA would be the organising body.
The urgency is underscored by market movements: Brent crude climbed back above $100 a barrel on 1 October, driven by the deployment of a third US aircraft carrier to the Middle East and China's suspension of fuel exports. Diesel prices in Europe have been particularly volatile, hitting households and hauliers across the continent.
Macron is set to host a G7 leaders' videoconference on Friday afternoon, with France currently holding the group's presidency. Energy security is expected to dominate the agenda, and the French proposal could serve as a basis for a joint statement.
The debate comes at a delicate moment for France's public finances, with the government already facing record debt levels and rising borrowing costs. Any additional fiscal strain from energy interventions would be unwelcome, but inaction could prove politically costly as well.
European diplomats acknowledge that the 50+50 formula is a compromise, but it may not satisfy Washington. The US has been pushing for a more substantial release, and the coming days will test whether Europe can present a united front. As one Brussels-based official put it, "We are ready to act, but we want to do it in a way that makes sense for our refineries and our consumers."
The outcome of the G7 call could shape the next steps. If leaders endorse the French proposal, the IEA would likely move quickly to implement it. If not, the transatlantic standoff over energy policy may intensify, with potential consequences for global markets and European households alike.
