4 hrs ago
White House Denies Report of 90-Day U.S. Diesel Export Ban
The White House said the United States was not preparing a 90-day ban on sending diesel to other countries.
The report had said the Trump administration was considering the ban.
President Donald Trump had earlier said he supported restricting diesel exports.
Energy Secretary Chris Wright said a total ban could cause new problems.
Refineries make diesel and gasoline together.
If they could not sell diesel abroad, they might run out of storage space and make less fuel overall.
That could reduce gasoline supplies and raise gasoline and jet-fuel prices.
The debate comes as diesel prices have reached record levels because wars and shipping disruptions have affected fuel supplies.
The White House denied reports that the Trump administration was preparing a 90-day blanket ban on diesel exports.
Energy Secretary Chris Wright said a broad export ban could raise gasoline and jet-fuel prices by forcing refiners to cut production.
President Donald Trump had said he supported restricting diesel exports as U.S. fuel prices surged.
Average U.S. diesel prices reached about $6.52 per gallon on Wednesday, roughly 76% higher than a year earlier, according to AAA data.
U.S. diesel futures initially fell after the report but recovered after the White House denial.
- Who
- The Trump administration, including President Donald Trump, Energy Secretary Chris Wright and Treasury Secretary Scott Bessent, was involved in the discussion.
- What
- The White House denied a report that the United States was preparing a 90-day blanket ban on diesel exports.
- Where
- The policy discussion concerned U.S. diesel exports and was addressed by officials in the United States, including Wright at an event in New York.
- When
- The denial came on Wednesday, September 23, after Trump expressed support for restrictions on Tuesday.
- Why
- Record diesel prices and disruptions to global fuel supplies prompted officials to consider ways to increase domestic fuel availability.
Supporters of Export Restrictions
Opponents of a Blanket Ban
Domestic diesel supply
Supporters of Export Restrictions
Donald Trump said he supported restricting exports, and Treasury Secretary Scott Bessent said the administration was examining whether a full or partial restriction was feasible.
Opponents of a Blanket Ban
Chris Wright said the goal should be finding an efficient way to bring more diesel into the United States while maintaining gasoline and jet-fuel flows, rather than using a blanket ban.
Effect on fuel prices
Supporters of Export Restrictions
Supporters viewed restricting exports as a possible way to keep more diesel in the United States while prices were at record levels.
Opponents of a Blanket Ban
Wright and Goldman Sachs analyst Daan Struyven warned that reduced exports could fill storage, force refiners to cut production and reduce gasoline supplies, potentially increasing gasoline and jet-fuel prices.
International fuel markets
Supporters of Export Restrictions
A restriction could direct more U.S. diesel toward domestic users amid disruptions linked to conflicts and shipping routes.
Opponents of a Blanket Ban
Opponents noted that Europe and Latin America rely on U.S. diesel, so a major restriction could affect overseas supplies as well as the U.S. market.
Key facts
- Reported policy
- A 90-day, temporary blanket ban on U.S. diesel exports was reported but denied by the White House.
- Average diesel price
- About $6.52 per gallon on Wednesday, according to AAA data cited by Reuters.
- Year-over-year increase
- Approximately 76%.
- Energy Secretary's position
- Chris Wright said a blanket diesel export ban would not work and could raise gasoline and jet-fuel prices.
- President's position
- Donald Trump said Tuesday that he supported restricting diesel exports.
- Diesel futures
- U.S. ultra-low-sulfur diesel futures fell about 4% after the report and reversed some of the move after the denial.
- Major export markets
- The United States supplies diesel to overseas markets including Europe and Latin America.
Quotes
Chris Wright
US energy secretary who opposed a blanket diesel export ban
“What's being discussed is what's the most efficient way to get more diesel into the United States of America, and continue maximum flows of gasoline and jet fuel.”
livemint.com
“The blunt tool of banning diesel exports definitely doesn’t work.”
livemint.com
Sources
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