Europe's Diesel Squeeze Deepens as Saudi Crude Cutoff Bites

French President Emmanuel Macron is calling G7 leaders back to the table to coordinate another emergency release of strategic oil reserves after Saudi Aramco confirmed it will send zero crude to European term customers in October. At least two European refiners were told their allocations were cut entirely, with the policy applying across all European term buyers.

The cutoff compounds an already tightening diesel market, with prices pushing deeper into record territory as Europe loses a key crude source just as winter fuel demand approaches.

Macron's plan involves coordinating stock levels, export flows, and production capacity among G7 members while France separately works to lock down diesel, jet fuel, and natural gas supplies for the coming months.