The European Commission on Friday firmly rejected the possibility of a ban on diesel exports from the United States, warning that such a step would damage trust in Washington as a reliable partner. The Commission also said the EU stands ready for collective action within the International Energy Agency (IEA), following a meeting of the Energy Union Task Force earlier in the day.
Commission position on a possible ban
Speaking at the midday press briefing, Anna-Kaisa Itkonen, the European Commission's spokesperson for energy, said: "We fully reject any ban on diesel. Such a ban would benefit no one and would undermine our trust in the United States as a reliable partner."
She added: "The European Union is ready for collective action within the framework of the IEA. It is its role to organise a possible release of stocks."
Extraordinary meeting of member states
Also on Friday, the Irish Presidency of the Council of the EU announced an extraordinary meeting of the Deputy Permanent Representatives (Coreper I) in the early afternoon to discuss the global energy situation.
"The diesel market is currently experiencing a severe shortage, leading to high prices for consumers around the world. The Presidency is committed to maintaining close cooperation and coordination with all member states and the Commission," a spokesperson for the Presidency said.
G7 coordination led by France
According to Ms Itkonen, France, which holds the G7 presidency this year and is working with the IEA, intends to convene a video conference of leaders as soon as possible "to ensure the coordination of the measures that need to be taken to ease the pressure on prices and secure the supply of crude oil and refined products".
The Commission said the video conference could take place on Friday afternoon.
Asked whether France had submitted a request to the G7 or the IEA, and about the volume and timing of any possible release, the spokesperson referred questions to France. She noted that "no decision has been taken for now" and that any decision would be taken in cooperation with the IEA.
Questions on stock releases
Ms Itkonen was asked whether she could confirm that the United States had requested the release of 100 million barrels of diesel over the next 15 days, and whether such a step would be compatible with the Oil Stocks Directive. In response, she recalled that the Energy Union Task Force does not coordinate oil or gas stocks.
Asked about the content of a French proposal to the Task Force, she said there is intensive coordination with member states, the US administration and other partners.
Price increases and earlier measures
The spokesperson recalled that since the end of February, natural gas prices have risen by 140% and diesel prices have doubled. She also noted that a coordinated release of oil stocks was agreed in March in cooperation with the IEA, and that its implementation is ongoing.
According to Ms Itkonen, the EU's priorities are ensuring security of supply for member states and coordinating any action they may take, while "any decision on releasing stocks is taken by the IEA".
Response to a possible US ban
Asked whether the EU was prepared to retaliate against a possible US ban on diesel exports, Ms Itkonen said the EU was proceeding "step by step", adding that "the EU will be united whatever happens, and in action within the framework of the IEA".
Energy Union Task Force assessment
In an announcement issued earlier on Friday by the Directorate-General for Energy, the Commission said the Energy Union Task Force (Security), made up of senior representatives of the Commission and member states, met to discuss the latest developments in the diesel market and their impact on prices.
According to the announcement, diesel supply in the EU remains stable for now, although prices remain high, reflecting global market tightness. The Commission and the Task Force will continue to monitor the situation closely and coordinate action as needed.
Source: CNA
