Key facts
- The White House denied reports of a potential 90-day ban on U.S. diesel exports.
- Energy Secretary Chris Wright stated voluntary measures are being discussed to increase U.S. diesel supply.
- The average U.S. diesel price reached $6.5276 per gallon, a significant increase from the previous month and year.
- US diesel futures fell 4% on Wednesday following initial reports of a potential export ban.
- US diesel inventories have dropped to less than 97 million barrels, 13% below the five-year seasonal average.
The White House on Wednesday denied reports that it is considering a 90-day ban on U.S. diesel exports, a move that had been suggested by President Donald Trump and Treasury Secretary Scott Bessent. Energy Secretary Chris Wright clarified that the administration is pursuing voluntary measures to increase diesel supply in the U.S. market, rather than a flat ban.
Average diesel prices in the U.S. have surged to $6.5276 per gallon, according to AAA data, a significant increase from a month ago and the previous year. This price surge, attributed partly to global supply disruptions from conflicts in Iran and Ukraine, is impacting industrial sectors and threatening economies. Republican Senators, including Iowa's Chuck Grassley, have called for export restrictions to support American farmers and truckers.
Analysts and industry groups, such as the American Petroleum Institute (API) and GasBuddy, argue that an export ban would not solve high prices and could exacerbate refining challenges. They contend that the U.S. is not short of diesel but that the world is, and restricting exports could reduce refinery run rates, tighten supplies, and damage long-term refinery capacity and the U.S. position as a global diesel supplier.