U.S. Energy Secretary: Blunt Tool of Banning Diesel Exports Doesn't Work
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US Energy Secretary Chris Wright has publicly opposed calls for a ban on US diesel exports, arguing on Wednesday that the measure would backfire by increasing gasoline and jet fuel prices.
"The blunt tool of banning diesel exports definitely doesn't work,"Wright said at an event in New York, as reported by Reuters.
Wright said restricting exports would leave refiners with excess diesel inventories, forcing them to cut refinery output.
Lower refinery runs, he warned, would tighten supplies of other fuels, ultimately driving up costs for consumers and businesses.
His comments put him at odds with President Trump, who signaled support for the idea on Tuesday as diesel prices surge to record highs in the US and Europe (and Treasury Secretary Bessent has been assigned to see "if it's feasible." Trump's comments already sent European prices for the fuel surging.
With flows from the region’s top supplier at risk, Bloomberg reports that European diesel’s premium to Brent crude jumped to more than $95 a barrel on Wednesday, a record in Bloomberg data going back to 2011.
Known as the crack spread, the indicator has been keenly watched by central bankers as they seek to tame inflation.
The equivalent measure in the US, meanwhile, weakened.
Trump’s threat comes as Europe is already grappling with the loss of diesel shipments from the Middle East, and Russian export curbs have tightened the global fuel market further.
The US has become Europe’s main overseas supplier, with American exports of the workhorse fuel surging to a weekly record near 2 million barrels a day last month.
A key US oil industry groupcautioned against the move, saying it could lower American fuel production and damage the global economy.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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