After threatening to ban U.S. exports of diesel fuel, Trump admits ‘we were never going to do it’

The Group of Seven wealthy democracies announced plans on Friday to release 100 million barrels of oil and fuel products, starting with diesel after prices spiked. This comes after President Donald Trump threatened to ban U.S. exports of diesel fuel, but later admitted "we were never going to do it." The G7 countries – Canada, France, Germany, Italy, Japan, the U.K., and the U.S., plus EU representation – agreed not to limit energy exports to one another.

The move aims to reduce prices, which have been driven up by the Iran war and trade disagreements, resulting in a national average diesel price of $6.37 in the U.S. Michael Lynch, a distinguished fellow at Energy Policy Research Foundation, believes the release could lower prices by 25-50 cents per gallon. However, energy market analysts warn that a U.S. export ban could initially lower prices but ultimately backfire by reducing supplies as diesel production must decrease alongside overall refinery output.