Trump administration reportedly weighs 90-day diesel export ban amid pushback and White House denial
Politico reported that the Trump administration is preparing a 90-day ban on U.S. diesel exports to curb fuel prices, though a White House official labeled the report fake news and energy sector critics warned the move could backfire.
The Trump administration is preparing a plan to impose a 90-day ban on U.S. diesel exports to keep more supply domestically and rein in high fuel costs ahead of the midterm elections, Politico reported. U.S. diesel prices have averaged around $6.52 per gallon, up $2.83 from a year ago and more than 100% higher than nine months prior. Any temporary export halt would represent the first major restriction of its kind since President Barack Obama lifted the long-standing oil export ban in 2015.[4][6][7][8][10]
The prospect of an export ban immediately triggered conflicting reports and pushback. A White House official disputed the initial reports, describing claims that the administration is considering a diesel export ban as fake news. Energy Secretary Chris Wright said via Reuters that an export ban would not work and publicly rejected a full ban, arguing it could send prices higher, despite separate reports that Wright had told energy executives an export restriction was imminent.[1][5][8][11]
Oil industry representatives and market observers warned that restricting exports could leave refiners with surplus fuel they cannot sell, forcing cuts to refinery runs. According to The Wall Street Journal, such restrictions could curb refinery processing by roughly 2 million barrels per day and cut gasoline output by up to 750,000 barrels per day, ultimately driving gasoline and jet fuel prices higher. Bloomberg reported that an export halt would also strain foreign buyers such as the United Kingdom and Brazil while the Iran war constrains global supply.[2][3][8][11]
Markets reacted swiftly to the reports. U.S. diesel crack spreads dropped $12.70 to $97.85 per barrel and diesel futures fell 7%. Conversely, gasoline cracks rose $2 to $47.41 per barrel and European gasoil cracks gained on expectations of tighter international supplies and reduced refining runs.[9][10]
Key facts
- Politico reported that the Trump administration is drafting a 90-day ban on U.S. diesel exports to combat elevated domestic fuel prices.
- A White House official disputed the story, calling reports that the U.S. is considering a diesel export ban 'fake news.'
- Energy Secretary Chris Wright publicly stated that a diesel export ban would not work, despite reports that he previously told oil industry CEOs a ban was coming.
- U.S. diesel prices have averaged around $6.52 per gallon, climbing $2.83 over the past year and more than 100% above lows seen nine months ago.
- The Wall Street Journal reported that export restrictions could cut U.S. refinery runs by approximately 2 million barrels per day and reduce gasoline output by up to 750,000 barrels per day.
- Following the report, U.S. diesel crack spreads dropped $12.70 to $97.85 per barrel and futures dropped 7%, while gasoline cracks rose $2 to $47.41 per barrel.
- Bloomberg reported that an export ban would leave nations including Brazil and the United Kingdom scrambling for supplies while the Iran war constrains global energy markets.
Sources · 7 sources
- *B
*Walter Bloomberg@DeItaonePost on X ·
WHITE HOUSE OFFICIAL SAYS REPORT THAT US IS CONSIDERING A DIESEL EXPORT BAN IS 'FAKE NEWS'
Open source - CN
CNBC@CNBCPost on X ·
Oil industry warns a diesel export ban will raise fuel prices as Trump weighs restrictions https://t.co/PaH0ZfoxMn
Open source - BL
Bloomberg@businessPost on X ·
A proposed US diesel export ban touted by President Donald Trump would leave countries including Brazil and the UK racing to secure the fuel, pressuring near-record prices even higher as the Iran war chokes global supply. https://t.co/Z4U3KrrR0D
Open source - *B
*Walter Bloomberg@DeItaonePost on X ·
WHITE HOUSE PREPARES 90-DAY DIESEL EXPORT BAN The Trump administration is preparing a 90-day ban on U.S. diesel exports, according to Politico, as record fuel prices intensify pressure ahead of the midterms. Diesel averages $6.52 per gallon, up $2.83 from a year ago. The proposal faces strong internal and industry opposition, with critics warning it could eventually reduce refinery output and push gasoline and jet-fuel prices higher.
Open source - UW
unusual_whales@unusual_whalesPost on X ·
US Energy Secretary Wright says diesel export ban would not work, per Reuters
Open source - *B
*Walter Bloomberg@DeItaonePost on X ·
TRUMP ADMINISTRATION IS PREPARING A PLAN TO BAN EXPORTS OF DIESEL FOR 90 DAYS - POLITICO
Open source - BL
Bloomberg@businessPost on X ·
With the midterms approaching, the Trump administration is trying to find ways to curb fuel costs, including a potential US diesel export ban. 🎙️ Listen to the Big Take Podcast: https://t.co/CDKZEjxWqv https://t.co/x4zxjLfAwf
Open source - WG
Watcher.Guru@WatcherGuruPost on X ·
JUST IN: 🇺🇸 US preparing 90-day ban on diesel exports. The Trump administration is preparing a 90-day ban on US diesel exports as fuel prices continue to surge, with diesel averaging around $6.52 a gallon nationwide. The goal would be to keep more diesel in the US and bring prices down in the short term. Some officials and oil companies are pushing back on the idea. They say a ban could leave refiners with more diesel than they can sell, forcing them to cut production and potentially driving fuel prices higher. Energy Secretary Chris Wright has publicly rejected the idea of a full export ban, saying it could send prices higher.
Open source - *B
*Walter Bloomberg@DeItaonePost on X ·
DIESEL CRACKS PLUNGE ON U.S. EXPORT BAN REPORT U.S. diesel cracks fell $12.70 to $97.85/bbl after Politico reported the White House is preparing a 90-day diesel export ban. Meanwhile, gasoline cracks jumped $2 to $47.41/bbl, reflecting concerns that lower diesel margins could force refiners to cut production and tighten gasoline supply. European gasoil cracks also rose as markets priced in reduced U.S. diesel exports.
Open source - TK
The Kobeissi Letter@KobeissiLetterPost on X ·
BREAKING: President Trump is preparing a 90-day ban on US diesel exports in an effort to bring down record diesel prices, per Politico. Any halt to shipments would be the first such restriction since 2015, when President Obama lifted a long-time ban on oil exports. This comes as diesel prices have surged over +100% from their lows seen just nine months ago. Diesel futures are down -7% on the news.
Open source - CB
Coin Bureau@coinbureauPost on X ·
🚨BREAKING: Trump administration is preparing a 90-day ban on U.S. diesel exports, with an announcement possible by the end of the week, per Politico. U.S. diesel prices have climbed above $6.50 per gallon as fuel costs intensify pressure ahead of the midterms. Energy Secretary Chris Wright reportedly told energy CEOs a ban was coming, prompting immediate pushback to the White House. Restrictions could cut refinery runs by roughly 2 MILLION barrels per day and gasoline output by up to 750,000 barrels per day, according to WSJ. A ban intended to lower diesel prices could backfire by reducing refinery output and driving gasoline and jet-fuel prices higher.
Open source