WTI Drops Almost 4% Amid Potential EU Emergency Stockpile Release
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Oil prices experienced a sharp decline on Friday as Europe neared a decision on another emergency oil stockpile release under pressure from the Trump administration. This development pushed WTI down by nearly 4% and dragged Brent below the $100 mark. Early in the morning, WTI was trading down 3.78% at $89.36, while Brent fell 2.46% to $99.79 per barrel.
The market downturn followed reports that European nations are considering a coordinated release of emergency oil reserves. The move comes as Washington urges its allies to inject more crude and diesel into the global market to alleviate the ongoing fuel shortage.
European Energy Commissioner Dan Jørgensen confirmed the discussions in an interview with Euronews, stating that the European Union is consulting with all International Energy Agency (IEA) members regarding the timing of a potential release. He noted that strategic reserves have been used previously to curb rising fuel prices and remain a viable option.
To evaluate potential strategies, the European Commission held a call on Thursday with several nations, including the UK.
According to sources, the U.S. administration has specifically pressured Germany and France—which together hold roughly 35% of the EU’s strategic diesel reserves—to release diesel from their stockpiles. Washington has reportedly warned of a potential U.S. diesel export ban if European allies do not comply. The EU holds an estimated 39 million tons of diesel, equivalent to more than two months of consumption.
The pressure intensifies as global fuel markets, particularly for diesel, continue to tighten. A September spike in crude prices past $100 per barrel pushed diesel prices to record highs in multiple countries, including the United States.
The U.S. is specifically urging European countries that have not fully delivered on their emergency stockpile commitments from the early weeks of the Iran war to do so now. U.S. Energy Secretary Chris Wright recently pointed out that while the U.S. and Japan are meeting their pledges, several European members have only released a fraction of their promised crude oil and petroleum products, calling on all member countries to fulfill their obligations.
