President Donald Trump said Wednesday he is still weighing a ban on diesel exports but warned the move could push gasoline prices higher. His comments came as crude exports through the Strait of Hormuz returned to prewar levels and diesel prices sat at record highs.
Trump told reporters in the Oval Office he has not decided on a diesel export ban, saying his aides believe it would help diesel but could raise the price of other things. The remark marked a shift from three days earlier, when he said he was very seriously considering the move despite warnings from the U.S. oil industry that a ban would force refiners to cut production and raise domestic energy costs.
Trump points to Strait of Hormuz recovery
Trump argued the broader picture has improved. According to CNBC: "We're in a very good place", he said, pointing to a rebound in crude exports through the Strait of Hormuz, where daily exports returned to prewar levels this week after ship traffic was stifled when the U.S. and Israel attacked Iran in late February. Oil prices rose Wednesday as prospects for U.S. talks with Iran appeared to stall again.
But he still declined to rule out an export ban entirely, saying a ban would have a negative impact on gasoline, pushing gasoline prices up a little while bringing diesel prices down a little.
Energy secretary cites tight diesel supply
Energy Secretary Chris Wright, standing beside Trump, said diesel prices have already started falling and predicted a bigger drop in the coming weeks. Wright acknowledged diesel supplies remain tight because of lost exports tied to conflicts in Russia and the Middle East, as well as disruptions from China. He noted American refiners are running at record highs and pointed to upcoming European diesel supply announcements that would push prices down.
Trump again blamed Russia's war against Ukraine as the biggest problem for diesel. Separately, diesel prices have soared to record highs amid the continuing conflicts in Iran and Ukraine.
Source: CNBC
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