Crude oil prices slid on Friday morning, extending losses following reports that European nations are considering releasing diesel and crude oil reserves to address global supply shortages.
Brent crude futures for December delivery fell 3.1% to around $99.13 per barrel, while West Texas Intermediate (WTI) for November delivery dropped 4% to $89.18.
The decline followed a Reuters report stating that European Union (EU) member states are discussing a French proposal to release additional reserves. The proposal entails the release of 50 million barrels of diesel by EU nations and 50 million barrels of crude oil by members of the International Energy Agency (IEA).
However, the report has not been independently verified by CNBC. Spokespersons for the French government and the IEA have not yet provided comments.
EU Discusses Measures to Address Diesel Shortage
The EU is scheduled to hold crisis talks on Friday to discuss a response to rising diesel prices. The discussions also follow a call by US Treasury Secretary Scott Bessent for European nations to accelerate the release of supplies from their reserves.
The United States supplied approximately half of the EU's diesel imports in August, according to the IEA, highlighting the bloc's reliance on external supplies.
At the same time, the oil market remains influenced by developments in the Middle East. The US is reportedly deploying a third aircraft carrier strike group to the region, alongside an amphibious force carrying around 2,000 Marines.
These developments heighten the risk of prolonged geopolitical tensions, particularly given that the Strait of Hormuz remains a critical artery for global oil trade. For now, the potential release of oil and diesel reserves by European nations is a key factor weighing on oil prices, while developments in the Middle East continue to pose a risk to global supply.
