French President Emmanuel Macron called on the G7 to coordinate a response to rising diesel prices and proposed a large-scale strategic reserve release plan, causing international oil prices to tumble sharply and market risk appetite to rebound noticeably.

According to CCTV News, on October 2 local time, French President Emmanuel Macron urged the Group of Seven to take coordinated action, avoid implementing export restrictions, and jointly curb rising fuel prices. Meanwhile, according to Reuters, during a Friday conference call among EU member state governments, parties discussed a proposal put forward 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 emerged, international crude oil prices plunged—WTI crude fell below the $90 per barrel mark to $89.96 per barrel, down 3.0% on the day; Brent crude also dropped below $100 per barrel to $99.95 per barrel.

As the market awaited the U.S. September nonfarm payrolls report, risk assets strengthened broadly. The Euro Stoxx 50 index, France's CAC 40 index, and Germany's DAX index all extended gains to more than 1%; U.S. stock index futures also rose in tandem, with Nasdaq 100 futures up 0.9% and S&P 500 futures up 0.5%.

U.S. Pressures with Export Ban, Europe Caught in a Dilemma

According to CCTV News, the United States is demanding that Europe further tap fuel reserves, especially urging France and Germany to release emergency diesel reserves. According to U.S. sources, Washington wants the EU to put 120 million barrels of diesel onto the market over the next six months, while not ruling out restricting U.S. diesel exports to ease domestic price pressures.

Due to the embargo on Russian petroleum products and disrupted Middle East supply, Europe's dependence on U.S. diesel has increased significantly. France consumes about 600,000 barrels of diesel per day, about half of which relies on imports. If the United States restricts exports, it could further push up European fuel prices and intensify cost pressures on the transport and agricultural sectors.

According to Reuters, the Trump administration is particularly dissatisfied with France and Germany, with U.S. officials believing the two countries' previous commitments to release emergency oil and petroleum product reserves were insufficient and that they failed to deliver on their promises.

U.S. Energy Secretary Chris Wright said in an interview with Fox News on Thursday that he is "highly optimistic" about Europe using emergency diesel reserves to calm oil prices. "It's harvest season right now, and we're about to enter the peak winter heating oil consumption season. Now is the time to increase diesel supply to the market," Wright said. "These diesel reserves are ready to go, and I think positive news will come."

U.S. Treasury Secretary Bessent said on social platform X that the United States has fulfilled its obligations under the March International Energy Agency member agreement by releasing 172 million barrels of crude oil. "The United States has done its part," Bessent wrote. "We expect our allies to turn commitments into action."

However, for the EU, a large-scale reserve release is not easy. According to Reuters, the EU needs to balance lowering domestic fuel prices against maintaining sufficient reserves to cope with a potential worsening crisis—especially against the backdrop of uncertain prospects for Trump's negotiations with Iran. According to reports, a U.S. official said: "Working with the United States to jointly boost refined product supply and lower consumer costs is in Europe's own interest."

France is actively pushing major economies to take coordinated action on energy supply issues. The Elysee Palace said French President Macron has separately spoken with Trump and Canadian Prime Minister Carney about energy and fuel price issues. Macron made clear that the G7 should act in a coordinated manner, should not set export restrictions, and will convene G7 leaders to specifically discuss oil supply and prices.

EU Holds Emergency Consultations, France Proposes Compromise Plan

Facing pressure, European parties launched intensive coordination. According to Reuters, citing EU officials, the European Commission and an energy working group composed of 27 member states held a conference call on Friday morning to discuss the current situation. A day earlier, the European Commission had held preliminary calls with Germany, France, Italy, the UK, and Ireland to assess whether diesel reserves need to be released.

During the Friday conference call among EU member state governments, parties discussed a proposal put forward by France: European countries would release 50 million barrels of diesel, while International Energy Agency members would release 50 million barrels of crude oil. People familiar with the matter revealed that countries also reached consensus on a key precondition: any agreement on further reserve releases should be conditional on a U.S. commitment not to unilaterally impose a diesel export ban.

Meanwhile, G7 leaders may hold a video call on Friday afternoon to discuss next steps. An Elysee Palace official said Macron plans to convene a G7 leaders' video conference to coordinate on fuel price increases and global supply of refined products, and to promote a joint reserve release with the International Energy Agency.

It is worth noting that the official also revealed that when Macron and Trump met in New York last week during the United Nations General Assembly, the two sides did not discuss this issue.