Oil Tumbles Below $100 as Europe Weighs 50 Million Barrel Diesel Release Under US Pressure

Oil prices fell sharply on Friday after reports emerged that EU governments are actively discussing a coordinated release of strategic fuel reserves. A French proposal circulated during a call among EU member states would see European countries release 50 million barrels of diesel while International Energy Agency members release a further 50 million barrels of crude oil, according to sources. The discussions came following pressure from the Trump administration to ease a global diesel supply shortage.

Brent crude futures dropped 2.5% to $99.51 per barrel, slipping back below the $100 level, while U.S. West Texas Intermediate fell 3.6% to $89.47. Diesel prices also slid to a multi-week low under $4.50 per gallon. The selling extended losses already building from earlier in the session and put oil on course for a weekly decline, compounded by signs that Middle East crude exports were recovering toward prewar levels.

The EU confirmed its readiness for collective action, with a spokesperson stating the bloc is open to a coordinated stock release under IEA leadership while adding that supplies remain stable for now and that the EU rejects any outright ban on diesel exports. Germany said it is monitoring the diesel supply situation closely and aims to avoid further market uncertainty. Separately, Russia signaled it may ease its own diesel export ban if domestic overproduction occurs, adding another potential source of supply relief to the market.