Oil settles lower as Europe agrees to release diesel stocks
In short
Oil prices settled lower on Friday after European countries agreed to release diesel reserves, following US pressure to ease a fuel supply crunch. Brent settled at $102.25 a barrel, down 6 cents or 0.06 per cent, while WTI fell $1.76, or 1.9 per cent, to $91.11, according to WAM and The National. The National, citing Reuters, said EU governments discussed a French proposal to release 50 million barrels of diesel and for IEA members to release 50 million barrels of crude.
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Oil prices settled lower on Friday after European countries agreed to release additional diesel stockpiles, easing concerns over tight global energy supplies. Brent crude settled at $102.25 a barrel, down 6 cents or 0.06 per cent, while US West Texas Intermediate fell $1.76, or 1.9 per cent, to $91.11 a barrel, according to WAM and The National. The two benchmarks had moved more than 3 per cent and 4 per cent respectively earlier in the session, The National reported. [ 1 , 2 , 3 ]
The National, citing Reuters, said EU governments discussed a French proposal for European countries to release 50 million barrels of diesel and for International Energy Agency members to release 50 million barrels of crude oil. It said the discussion came in response to US pressure on European nations to release more supplies to reduce surging fuel prices, and that US President Donald Trump had previously said he was considering a ban on US diesel exports. Forbes Middle East and WAM said European countries agreed to release diesel reserves following a request by Trump; Forbes said the aim was to ease fuel shortages and reduce Europe's reliance on US imports. [ 1 , 2 , 3 ]
Daniel Richards, senior economist at Emirates NBD, said “Shipping-related reassurance around the Strait of Hormuz and a possible opening on Iranian nuclear inspections weighed on prices, but renewed US military deployments to the region kept the risk premium alive,” according to The National. The National also reported that Brent remained volatile on Thursday, opening lower but rallying more than 4 per cent intraday before closing down 1.2 per cent at $102.3 a barrel on supply improvement signals from the Middle East. [ 1 ]
The documents differ on weekly figures. The National said Brent slid nearly 2 per cent from the previous week's close and was heading for a weekly loss while WTI was set for a weekly gain. WAM reported that for the week Brent gained 0.11 per cent while WTI declined 1.6 per cent. The documents do not reconcile the two accounts. [ 1 , 3 ]
Why it matters
The decision by European governments to draw on emergency diesel reserves, described by business and official outlets as a response to US pressure, is a supply-side move that affects fuel prices beyond Europe. Oil benchmarks traded in dollars and shaped by Middle East shipping and Iran-related risk remain highly sensitive to such releases, and the documents show the two main benchmarks moving in different directions week-on-week. The documents give no basis for judging longer-term effects.
Key facts
- Brent crude settled at $102.25 a barrel on Friday, a fall of 6 cents or 0.06 per cent, according to WAM. [ 1 , 3 ]
- US West Texas Intermediate settled at $91.11 a barrel, down $1.76 or 1.90 per cent. [ 1 , 3 ]
- EU governments discussed a French proposal for European countries to release 50 million barrels of diesel and for International Energy Agency members to release 50 million barrels of crude oil, The National reported, citing Reuters. [ 1 ]
- Forbes Middle East and WAM reported that European countries agreed to release diesel reserves following a request from US President Donald Trump. [ 2 , 3 ]
- Trump had previously said he was considering a ban on US diesel exports, according to The National. [ 1 ]
- Daniel Richards, senior economist at Emirates NBD, said shipping-related reassurance around the Strait of Hormuz and a possible opening on Iranian nuclear inspections weighed on prices, while renewed US military deployments to the region kept the risk premium alive. [ 1 ]
Confirmed by several sources
- Oil prices settled lower on Friday after European countries agreed to release diesel stockpiles. [ 1 , 2 , 3 ]
- Brent settled at $102.25 a barrel. [ 1 , 3 ]
- WTI settled at $91.11 a barrel, down about 1.9 per cent. [ 1 , 3 ]
- The European move followed a request from US President Donald Trump. [ 2 , 3 ]
Still unclear
- The size and scope of the planned release, including 50 million barrels of diesel and 50 million barrels of crude oil. Only The National, citing Reuters, gives these figures; the other documents do not mention volumes.
- Whether European countries had agreed to release stocks or were still discussing a proposal. The National says EU governments discussed a French proposal, while Forbes Middle East and WAM say European countries or leaders agreed.
- The weekly direction of prices. The National says Brent slid nearly 2 per cent from the previous week's close and was heading for a weekly loss, while WAM reported Brent gained 0.11 per cent for the week and WTI fell 1.6 per cent; the documents do not reconcile the two.
- Whether the United States will restrict diesel exports. The National reports only that Trump had previously said he was mulling a ban; no decision is reported.
What local media are saying
Timeline, local time
- The National reports that oil prices ended lower on Friday after EU nations agreed to release additional diesel and crude stocks, easing supply concerns. [ 1 ]
- Forbes Middle East reports that prices settled lower after European countries agreed to release additional diesel stockpiles following a request from US President Donald Trump. [ 2 ]
- WAM reports that oil settled lower after European leaders agreed to Trump's request to release diesel from reserves to lower prices and reduce reliance on US fuel imports. [ 3 ]