DTN Oil Update
Oil Prices Slump as EU Considers Emergency Stock Releases
VIENNA (DTN) -- Oil futures fell Friday morning after the Elysee Palace proposed a joint EU-wide release of crude oil and diesel from strategic reserves. ULSD and European gasoil futures slumped, dragging lower the broader oil complex.
By 8:25 a.m. EDT, ICE Brent for December delivery was down $2.62 to trade near $99.69 bbl, and NYMEX WTI for November delivery fell $3.24 to $89.63 bbl.
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Downstream, NYMEX ULSD for November delivery retreated $0.1478 to $4.4942 gallon, and front-month RBOB futures slid $0.1143 to $3.2883 gallon.
The U.S. Dollar Index was steady, edging lower by 0.025 points to 101.86 against a basket of foreign currencies.
France's proposal came the day after the Trump administration threatened European countries with cutting off flows of U.S. diesel unless they released fuel from emergency stockpiles. The U.S. has with the loss of product streams from the Middle East become Europe's largest supplier of diesel.
EU members must hold enough oil and fuel in emergency reserves to meet two months' worth of consumption or three months' worth of net imports, whichever is greater. Data from the European Commission published last week showed high compliance among most member states, although did not offer a detailed breakdown by fuel type. In May 2025, Eurostat pegged EU-wide diesel emergency reserves at around 280 million bbl.
Reuters on Friday reported that Paris' initiative included a 50 million bbl diesel release from EU reserves, and a separate 50 million bbl release of crude oil from IEA member states, in addition to the 400 million bbl agreed to in March. Some European countries have been slow to meet their initially pledged volumes, with the IEA this week estimating that around two thirds of the 400 million bbl of crude oil has so far been released by the 32 members of the organization.
In the U.S., meanwhile, commercial distillate fuel oil inventories recently fell to an all-time seasonal low. Energy Information Administration data released Wednesday showed nationwide stockpiles trailing year-ago levels by 15%, with ultra-low sulfur diesel stocks registering a more than 16% year-on-year decline.
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