Oil prices fell sharply in early Friday trading, extending losses from earlier in the session, following reports that Europe plans to release diesel and crude oil reserves to ease a global supply shortage.

International benchmark Brent crude futures for December delivery dropped 2.5% to $99.51 per barrel, while U.S. West Texas Intermediate (WTI) crude futures for November delivery fell 3.6% to $89.47 per barrel.

The decline came after a report said EU member states are discussing a French proposal to release more diesel reserves following pressure from the Trump administration. The report, citing an anonymous source familiar with the discussions, said France proposed that EU countries release 50 million barrels of diesel and that International Energy Agency (IEA) member states release 50 million barrels of crude oil. Spokespeople for the French government and the IEA did not immediately respond to requests for comment.

The EU held crisis consultations on Friday to discuss a coordinated response to soaring diesel prices, after U.S. Treasury Secretary Scott Bessent called on European countries to urgently release some of their domestic reserves. In a social media post on Thursday, Bessent said America's European allies "should accelerate the delivery of existing commitments and immediately release additional supply to address the current supply disruption." He added: "American farmers, truckers and businesses should not be left alone to bear the pressure of the global diesel shortage."