Talk of Diesel Export Ban Deepens US Crude Futures’ Discount to Global Benchmark
Energy Secretary Chris Wright is weighing voluntary export limits as analysts warn a ban could force refiners to cut crude runs by 12%.
- West Texas Intermediate crude futures traded as much as $12.02 a barrel under Brent futures on Thursday, the largest discount since May 6, as investors price in potential stranded diesel.
- President Donald Trump said Tuesday he backed a diesel export ban, though the White House denied reports of a 90-day prohibition on Wednesday, and Energy Secretary Chris Wright argued it would not control surging prices.
- Wood Mackenzie analysts said a diesel export ban would redirect a 700,000 bpd oversupply into storage, filling Gulf Coast inventories within a month, potentially forcing US refiners to cut crude runs by 12 per cent.
- Domestic diesel prices hit a record $6.528 a gallon this week, stirring political uproar, but analysts warn the crude discount indicates potential increases in gasoline prices while diesel costs may rise again.
- Surging freight rates driven by the war with Iran have increased shipping costs to around $50 million, while inflation fears threaten the Republican Party ahead of the November midterm elections.
83 Articles
83 Articles
The current global shortage of diesel could deepen even more if American oil companies voluntarily reduce exports of this oil derivative, or, even worse, if the administration of Donald Trump completely bans exports, warn energy experts around the world.
Britain risks disaster if the United States bans diesel exports, the Telegraph writes
Britain risks disaster if the United States bans diesel exports, the Telegraph writes.London will face accelerating inflation, as well as become heavily dependent on unreliable foreign investors.At the same time, it will be difficult for the British...
They sold us America as a reliable supplier. Serious. Friend. Then it was enough a sentence, pronounced by Donald Trump Tuesday in New York, between a coffee and the other at the General Assembly of the UN: diesel is not sent out anymore. So much enough. Wednesday morning, in London, the future Europeans on diesel flew 7%, at 1,528 [...] The article Trump blocks diesel: so Europe pays the bill of American roulette comes from Il Fatto Quotidiano.
Fairbanks Daily News-Miner
Free Malaysia Today NewsWhite House mulls range of options to lower diesel costs
Trump administration officials have floated a range of measures to curb soaring diesel costs, from suspending taxes on the fuel to removing restrictions on sales of a dyed, red variety normally reserved for off-road use.
The EU has strengthened its energy links with the US while at the same time trying to reduce its exposure to geopolitical shocks. However, US plans to limit diesel exports reveal how quickly commercial dependence can become...
Would Trump's Proposed Diesel Export Ban Reduce U.S. Energy Prices? Actually, It Might Backfire. Here's Why.
Trump might not follow through on an export ban, but if he does, it could cause more harm than good for Americans -- and energy stocks might suffer, too.
Coverage Details
Bias Distribution
- 51% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
