EU warns U.S. diesel export curbs could deepen Europe energy price pressures

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EU warns US diesel curbs

Highlights

EU energy commissioner Dan Jørgensen warns that any U.S. diesel export ban could lead to a 'very, very bad' winter for Europe, with diesel prices already near record highs.
Donald Trump's support for curbs on U.S. diesel exports raises market anxiety, as the U.S. is Europe's largest diesel supplier and traders fear catastrophic supply disruption.
European natural gas prices hit their highest since 2022 and Brent crude remains above $100 a barrel, intensifying already elevated regional energy cost pressures.

Diesel supply risks shape winter outlook

As reported by the Financial Times, EU energy commissioner Dan Jørgensen urges Donald Trump to preserve a "free flow" of diesel between the U.S. and Europe, saying that uninterrupted energy trade serves both sides' interests.

Jørgensen says this winter could be "very, very bad" for Europe and potentially the worst since 2022, even if U.S. diesel shipments continue. European diesel prices are already close to record highs, leaving the region exposed to any further disruption in supply.

Market anxiety rises after Trump says earlier this week that he would support a ban on diesel exports. Traders warn such a move would be catastrophic for Europe because the U.S. is the bloc's largest diesel supplier, although U.S. energy secretary Chris Wright later casts doubt on the case for a full embargo.

Broader energy market strain builds

The diesel threat adds to a wider set of pressures on Europe's energy system as the conflict in the Middle East continues to disrupt global supplies. That backdrop is keeping fuel markets volatile at a time when the region is especially vulnerable to winter demand spikes.

European natural gas prices recently reach their highest level since the 2022 energy crisis that followed Russia's full-scale invasion of Ukraine. Brent crude also remains above $100 a barrel, reinforcing the risk that households, industry and transport operators across Europe face another season of elevated energy costs.

In our earlier coverage of a potential U.S. diesel export ban, we explained how airlines and other fuel-intensive sectors warned that restricting diesel shipments could trigger a chain reaction across energy markets. We noted that even though the measure targets diesel, the resulting market dislocations could lift broader fuel prices, squeeze refinery output (including jet fuel), and ultimately raise operating costs across the economy.

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