Commodities
Home›Commodities›Energy›US Energy Secretary warns diesel export ban could rais…
US Energy Secretary warns diesel export ban could raise fuel prices
Chris Wright said restricting diesel exports would likely force lower refinery runs, tightening supplies of other fuels and pushing up costs for consumers and businesses.
US Energy Secretary Chris Wright has opposed calls to ban US diesel exports, arguing the policy would backfire by increasing gasoline and jet fuel prices, according to Reuters.
Wright said restricting exports would leave refiners with excess diesel inventories, prompting them to cut refinery output. He warned that lower refinery runs would tighten supplies of other fuels and ultimately raise costs for consumers and businesses.
The issue comes as global diesel supplies are already under strain, with Europe dealing with reduced diesel shipments from the Middle East and Russian export curbs tightening the market further. Bloomberg data cited in the report showed European diesel’s premium to Brent crude jumping to more than $95 a barrel on Wednesday, a record going back to 2011.
The US has become a key overseas diesel supplier for Europe, and the report cited US exports of the fuel surging to a weekly record near 2 million barrels a day last month. It also noted that an industry group cautioned the move could lower American fuel production and damage the global economy.
Latest closeWTI crude $91.79 ▼3.0%|Brent $97.67 ▼1.6%|Gasoline (RBOB) $3.338 ▼4.3%