s/traestephensDIESEL EXPORTS•12h
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Diesel futures plunged 10%, but U.S. spot prices barely moved
Supply squeeze
The White House is considering restricting U.S. diesel exports to increase domestic supply and lower prices. That would also cut fuel shipments from the world’s top diesel exporter while Washington urges the European Union to draw down emergency inventories.
The risk is a backfire: tighter exports could raise prices abroad, leave Gulf Coast refiners with excess fuel, and weaken incentives to keep producing as Middle Eastern disruptions and reduced Russian refining capacity tighten global supply. Diesel futures fell more than 10% in one week, but U.S. spot diesel prices fell only 0.5% and remained more than 41% higher on the year. Energy Secretary Chris Wright said U.S. and European supply announcements were expected.
The White House is considering restricting U.S. diesel exports to increase domestic supply and lower prices. That would also cut fuel shipments from the world’s top diesel exporter while Washington urges the European Union to draw down emergency inventories.
The risk is a backfire: tighter exports could raise prices abroad, leave Gulf Coast refiners with excess fuel, and weaken incentives to keep producing as Middle Eastern disruptions and reduced Russian refining capacity tighten global supply. Diesel futures fell more than 10% in one week, but U.S. spot diesel prices fell only 0.5% and remained more than 41% higher on the year. Energy Secretary Chris Wright said U.S. and European supply announcements were expected.
Timeline3
3d
Trump said he was very seriously considering a ban on U.S. diesel exports.
1d
The White House urged the European Union to draw down emergency diesel inventories to help lower global prices.
12h
Energy Secretary Chris Wright said diesel-supply announcements were expected from the United States and Europe.
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12h