Oil prices dropped sharply on Friday after reports that European Union states are weighing a coordinated release of diesel and crude stockpiles to ease a global supply shortage. Brent and WTI futures both extended losses as the EU held crisis talks following U.S. pressure to release reserves.
Oil prices fell sharply on Friday, extending losses from earlier in the session, after reports of a potential European move to release diesel and crude stocks to ease a global supply shortage.
International benchmark Brent crude futures with December expiry traded 2.5% lower at $99.51 per barrel, while U.S. West Texas Intermediate futures with November expiry fell 3.6% to $89.47.
The declines came shortly after Reuters reported that EU member states were discussing a French proposal to release additional diesel reserves following pressure from the Trump administration. The report, citing a single unnamed source, said France had proposed that EU nations release 50 million barrels of diesel and International Energy Agency members release 50 million barrels of crude oil. CNBC could not independently verify the report, and a spokesperson for the French government and the IEA were not immediately available to comment.
Separately, the EU is holding crisis talks on Friday to discuss a coordinated response to soaring crude oil and diesel prices after U.S. Treasury Secretary Scott Bessent called on European countries to urgently release some of the continent's reserves.
In a social media post Thursday, Bessent said Europe "should accelerate delivery on their existing commitments and make additional supplies immediately available", adding that American farmers, truckers and businesses should not be left carrying the burden of a global diesel shortage.
Source: US Top News and Analysis
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