French President Emmanuel Macron (R) walks with other officials from France to Trump Tower in New York City on Sept. 21, 2026, ahead of a meeting with U.S. President Donald Trump.
European leaders agreed Friday to a rapid release of some diesel stockpiles, pulling prices of oil down by more than 4% Friday, following pressure from the Trump administration.
The White House floated the idea of temporarily banning U.S. exports of diesel, a fuel that in late September saw prices climb to a record high of about $6.50 a gallon domestically. The surge in fuel costs has been a hot-button issue as the U.S. midterm elections loom in about a month.
The average price for diesel was at $6.37 a gallon on Friday, according to AAA.
The Group of Seven announced Friday that it plans to release 100 million barrels of refined products over the next four months in coordination with the International Energy Agency. The move will include a "substantial" release of diesel within the first 20 days by G-7 members and partners, the group of advanced economies said in a statement.
The move is "significant," said Patrick De Haan, head of petroleum analysis at GasBuddy. " It could temporarily help push prices down here for gasoline and diesel," ahead of the U.S. midterm elections in November.
The amount of the release is less significant than understanding whether this is truly "strategic," or actual additional supply - or if it is merely shifting inventories from one column to another, De Haan told MarketWatch by email.
On Truth Social, President Donald Trump said, "Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil," adding that the process would begin immediately.
Oil prices had been falling before the announcement and losses intensified after it. November West Texas Intermediate crude (CLX26) (CL.1), the U.S. benchmark, fell by 4.5% to $88.71 a barrel, on track for its lowest finish since Aug. 31, according to Dow Jones Market Data. The November contract for ultralow sulfur diesel, also known as heating oil (HOX26), lost 5.2% to $4.40 a gallon, on track for the lowest close since Aug. 28.
Michael Lynch, president at Strategic Energy & Economic Research, said the diesel release won't likely help Asian markets very quickly. Supplies will be rerouted but will take a few weeks to have the full impact, and they will "offset the Chinese decision to ban products this month."
Victor Reklaitis and Claudia Assis contributed.
-Myra P. Saefong