Macron calls for G7 coordination to address rising diesel prices, oil prices plunge in response, European stocks collectively rise

French President Macron has called on the G7 to coordinate in response to rising diesel prices and proposed a large-scale strategic reserve release plan, leading to a sharp drop in international oil prices and a significant increase in market risk appetite.

According to CCTV News, on October 2 local time, French President Macron urged the G7 to take coordinated action to avoid implementing export restrictions and to jointly curb the rise in fuel prices. Meanwhile, Reuters reported that during a call among EU member state governments on Friday, parties discussed a plan proposed by France: European countries would release 50 million barrels of diesel, while International Energy Agency members would release 50 million barrels of crude oil.

After the news broke, international crude oil prices plummeted—WTI crude fell below the $90/barrel mark, quoted at $89.96/barrel, with a daily decline of 3.0%; Brent crude simultaneously fell below the $100/barrel threshold, quoted at $99.95/barrel.

With the market awaiting the US September nonfarm payroll report, risk assets generally strengthened. The Euro Stoxx 50, France's CAC40, and Germany's DAX indices all expanded gains to over 1%; US stock index futures also rallied, with Nasdaq 100 futures up 0.9% and S&P 500 futures up 0.5%.

The US Applies Pressure with Export Ban, Europe Faces Difficult Dilemma

According to CCTV News, the US is demanding Europe further utilize fuel reserves, especially urging France and Germany to release emergency diesel reserves. According to US sources, the US wants the EU to release 120 million barrels of diesel into the market over the next six months and does not rule out restricting US diesel exports to ease domestic price pressure.

Due to Russia's ban on petroleum product exports and disruptions to Middle Eastern supplies, Europe has become significantly more dependent on US diesel. France consumes about 600,000 barrels of diesel per day, roughly half of which relies on imports. If the US restricts exports, it could further drive up European fuel prices and increase cost pressures for the transportation and agricultural sectors.

Reuters reported that the Trump administration is particularly dissatisfied with France and Germany, as US officials believe the two countries have not taken strong enough action to fulfill their previous commitments to release emergency oil and petroleum product reserves.

US Energy Secretary Chris Wright told Fox News in an interview on Thursday that he is "highly optimistic" about Europe using emergency diesel reserves to stabilize oil prices. "It's harvest season, and heating oil demand for winter is about to peak—now is the time to increase diesel supply to the market," Wright said. "These diesel reserves are ready, and I think positive news is coming."

US Treasury Secretary Bescent stated on social platform X that the US has fulfilled its obligations under this March's International Energy Agency member agreement, releasing 172 million barrels of crude oil. "The US has done its part," Bescent wrote. "We look forward to our allies turning their commitments into action."

However, for the EU, a large-scale reserve release is not an easy task. According to Reuters, the EU needs to balance lowering domestic fuel prices with maintaining sufficient reserves in case a potential crisis worsens—especially as the outlook for negotiations between Trump and Iran remains unclear. According to reports, a US official stated, "It is in Europe's own interest to work together with the US, jointly increase refined product supplies, and reduce consumer costs."

France is actively promoting coordinated action by major economies on energy supply issues. The Élysée Palace stated that President Macron has spoken separately with Trump and Canadian Prime Minister Carney on energy and fuel price issues. Macron has made it clear that the G7 should act in coordination rather than impose export restrictions and will convene G7 leaders to specifically discuss oil supply and price issues.

EU Holds Emergency Talks, France Proposes Compromise Solution

Facing pressure, various European parties are coordinating closely. According to EU officials cited by Reuters, the European Commission and a working group of 27 member states held a conference call on Friday morning to discuss the current situation. The day before, the European Commission had conducted a preliminary call with Germany, France, Italy, the UK, and Ireland to assess whether diesel reserves needed to be released.

During Friday’s call among EU member state governments, parties discussed a plan proposed by France: European countries would release 50 million barrels of diesel, while International Energy Agency members would release 50 million barrels of crude oil. Sources revealed that countries have also reached consensus on a key precondition: any agreement on further reserve releases must be conditional on the US committing not to impose a diesel export ban unilaterally.

Meanwhile, G7 leaders may hold a video call on Friday afternoon to discuss next steps. According to an Élysée Palace official, Macron plans to convene a G7 leaders' video meeting for coordination on rising fuel prices and global refined product supply, and to promote joint reserve releases with the International Energy Agency.

Notably, the official also revealed that during Macron's meeting with Trump at last week's United Nations General Assembly in New York, the two did not discuss this topic.