European Nations Agree to ‘Massive’ Release From Fuel Reserves as Trump Seeks Relief at the Pump Ahead of Midterms

With just over a month until the midterm elections and diesel prices hovering near record highs, President Trump secured a commitment from European nations to release a “massive amount” of diesel from their stockpiles. According to AAA, the average price for a gallon of diesel as of Friday morning was $6.37, up from $3.70 from a year ago. The high prices come amid a reduction in global production due to the ongoing war in Iran and Russia’s invasion of Ukraine. And as truckers feel the pinch of the higher prices, there are concerns that those extra costs will be passed on to consumers. Mr. Trump had been mulling a ban on diesel exports, which European leaders opposed. In August, American producers supplied roughly half of the European Union’s diesel imports. On Friday, the president wrote on Truth Social that “Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately.”In a statement released by the Élysée Palace at Paris, the G7 leaders said that they had agreed to a “coordinated release” of 100 million barrels over four months. The leaders also agreed to “refrain from export restrictions on energy and energy products between G7 countries.”The American Petroleum Institute said in a statement that it welcomes the release. “Increasing supply and keeping energy moving where it is needed can help ease pressure from the global refining disruption. We will continue working with the administration on solutions that strengthen supply and help deliver relief for consumers,” API said. In positive sign for those looking for relief at the pump, a trade intelligence firm, Kpler, reported that exports of crude oil through the Strait of Hormuz have returned to pre-war levels. That development, energy researchers say, is more likely to lead to relief than releases from oil reserves.An energy fellow at the University of Houston, Ed Hirs, told The New York Sun releases from oil reserves may provide short-term relief, but raised concerns that depleting the stockpiles now could hinder countries’ ability to respond to future oil market shocks and crises. Twin oil-related developments come as Republicans have been scrambling to find ways to provide relief to Americans at the pump ahead of the November election. Earlier this week, the Energy Department reported that America’s Strategic Petroleum Reserve is at its lowest level since October 1982. The efforts to bring down oil prices come as polls show voters are increasingly frustrated with high prices. A Fox News poll released on September 16 found that roughly half of respondents listed inflation, cost-of-living, and the broader economy among the top issues they care about. The survey also found that 55 percent of respondents said they trust Democrats to handle inflation and high prices, while 40 percent said the same of Republicans. Just 39 percent of voters said they approve of President Trump’s job performance, which is one percentage better than President Obama’s approval rating ahead of the 2014 midterm elections in the same poll. And a separate poll conducted by the Wall Street Journal found that majorities of Democrats and Republicans are open to government interventions in the market to try to address their cost of living concerns. Mr. Trump had floated the idea of implementing an export ban on diesel. He told Fox News last weekend that he is “very seriously” considering such a restriction. Some Republican elected officials have expressed support for an export ban. Senator Chuck Grassley wrote on X, “[With] diesel $6.57 in Iowa why doesn’t Pres Trump put an embargo on diesel exports like presidents in the 70s put embargoes on ag products bc food prices were inflated. High diesel prices ARE KILLING FARMERS INCOME.”The Republican Senate nominee in Michigan, Mike Rogers, wrote on X on Sunday, “I’ve been clear from the beginning: Iran cannot have a nuclear weapon, and the war cannot and should not drag on indefinitely — as this little video shows.”“I’ve also called for suspending diesel exports and the gas tax to bring costs down for American families in the meantime,” Mr. Rogers said. Congresswoman Ashley Hinson also called for a “pause” on diesel exports to “prioritize Iowa farmers.”In other states, Republican governors have taken steps that are aimed at bringing prices down. Texas Governor Greg Abbott issued a disaster declaration easing weight restrictions for fuel, agricultural, and timber loads. The declaration also allows for the use of dyed diesel, which is typically prohibited from use on public roads because it is exempt from state and federal taxes. Arkansas Governor Sarah Huckabee Sanders also lifted restrictions on the use of dyed diesel. While Republicans hope that a ban on diesel export will bring down prices, Mr. Hirs said that such a prohibition and other measures likely will not provide much relief.Mr. Hirs said that America produces more diesel than it consumes as it exports roughly 1.5 million barrels of diesel a day. Instead of driving prices down, he predicted that refineries, which have been running “24/7 since March,” will reduce production so they can perform maintenance that they have delayed since the start of the war in Iran, which, he said, could impact the price of jet fuel and gasoline. As long as the war drags on, and until producers in the Middle East can boost production, Mr. Hirs says there is “nothing” elected officials can do to alleviate high prices and that elected officials should be worried about the potential consequences of measures such as an export ban.“Government interventions typically, if they work, only work temporarily, but bring with them secondary and tertiary impacts,” he said. As for the steps by Mr. Abbott and Ms. Sanders, Mr. Hirs predicted that the easing of restrictions on dyed diesel will make no difference.

European Nations Agree to ‘Massive’ Release From Fuel Reserves as Trump Seeks Relief at the Pump Ahead of Midterms

European Nations Agree to ‘Massive’ Release From Fuel Reserves as Trump Seeks Relief at the Pump Ahead of Midterms

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