Trump downplays diesel export ban over impact on other fuels

President Donald Trump has indicated his decreasing interest in imposing a ban on US diesel exports, following the significant price surge in diesel. This shift in stance comes amidst the mid-term elections that pose a risk to his Republican Party's control of Congress, with voters expressing dissatisfaction due to high living costs.

Energy Secretary Chris Wright and Interior Secretary Doug Burgum have warned of potential adverse consequences, suggesting that a broad export ban could escalate prices for other fuels like gasoline. Trump acknowledged these concerns in a recent statement, stating that such a ban might increase the prices of other products and diesel might even decrease.

He also mentioned a potential intervention from European nations, which are expected to supply more diesel to the market. The White House is exploring other measures to alleviate the current situation, such as encouraging European countries, who have not fully utilized their oil reserves, to release more. They have also considered reducing diesel excise taxes.

The oil market observers have warned that curbing diesel exports could result in higher gasoline prices, as refineries produce both fuels simultaneously.