European governments and the United States are negotiating over emergency diesel reserves as a global shortage of refined fuel places increasing pressure on transport, agriculture and industry.

The Trump administration has urged France and Germany to release diesel from their strategic stocks, while raising the possibility of restricting American diesel exports if European governments fail to put additional supplies on the market.

Washington has asked Europe to release about 120 million barrels over six months, according to people familiar with the talks.

The demand puts European governments in a difficult position. Releasing reserves could help reduce prices in the short term, but it would also reduce the emergency buffer available if disruption to Russian or Middle Eastern supplies becomes more severe.

The European Commission, France, Italy, Ireland and Britain held discussions on 1 October over possible diesel stock releases. Germany has been involved separately in discussions with Washington.

France and Germany hold a substantial share of Europe’s emergency diesel reserves.

Under the EU’s Oil Stocks Directive, member states must maintain emergency crude oil or petroleum-product stocks equivalent to at least 90 days of net imports or 61 days of domestic consumption, whichever is higher.

The requirement exists to provide a buffer against major supply interruptions rather than normal market fluctuations.

Europe’s dependence on imported oil remains substantial. Oil accounted for around 38 per cent of the EU energy mix in 2024, while approximately 95 per cent of crude oil consumed in the bloc was imported.

The latest dispute follows months of mounting pressure in the diesel market.

EU Today reported in September that President Donald Trump had urged Ukraine to reduce attacks on Russian refining infrastructure as global diesel supplies tightened.

Moscow has since extended restrictions on diesel exports. At the same time, disruption to Middle Eastern refining and shipping has constrained another major source of supply, while China moved on 1 October to suspend most fuel-product exports outside Hong Kong and Macau.

The result has been a particularly sharp problem for Europe because its refining capacity has declined over the past two decades and it has become increasingly dependent on imported middle distillates.

European dependence on outside energy supplies was already becoming more expensive before the latest diesel shortage. Recent Eurostat figures showed that the value of EU petroleum-oil imports increased by 55.8 per cent in the second quarter of 2026, even though the physical volume imported rose by only 1.2 per cent.

The United States has become an increasingly important diesel supplier since Europe sharply reduced imports of Russian refined products following Moscow’s full-scale invasion of Ukraine.

That means a US export restriction would have an immediate impact on the European market.

EU Trade Commissioner Maroš Šefčovič said after discussions with US Trade Representative Jamieson Greer that Brussels wanted a coordinated transatlantic approach to lowering diesel prices.

He said restrictions on US diesel exports would damage Europe’s economic performance and that both sides had agreed to remain in close contact.

Šefčovič also noted that the EU had exceeded its commitment to purchase US energy under the trade agreement reached at Turnberry in 2025.

US Energy Secretary Chris Wright, meanwhile, said he was “highly confident” European governments would release additional stocks.

Wright argued that coordinated action was particularly important as the northern hemisphere moved into the harvest season and towards winter, when demand for diesel and heating fuels normally increases.

Emergency releases have already been used on an exceptional scale this year.

In March, the 32 members of the International Energy Agency agreed to make 400 million barrels of oil from emergency reserves available to the market after disruption caused by the Middle East conflict.

It was the largest coordinated stock release in the organisation’s history.

A further European release would therefore come only months after governments had already drawn on strategic reserves to stabilise markets.

The pressure is increasing as oil prices again move higher. Brent crude settled above $102 a barrel on 1 October amid concerns over Chinese fuel exports and further US military deployments to the Middle East.

EU energy officials are now considering whether the immediate risk of high diesel prices outweighs the value of keeping fuel in reserve against a potentially more serious supply disruption later in the year.