DIESEL: Overview: Trump Considers Diesel Ban
President Trump said at the UN General Assembly Sep. 22 that he is considering restricting diesel exports, a move which appears to have blindsided oil executives. * Treasury Secretary Scott Bessent said that officials are "examining whether it's feasible in terms of the overall refining capacity and whether a full or partial ban would work." * Diesel prices have hit new record levels, prompting the president to consider a ban. This has been driven by lost volumes due to disruption of crude and product flows through the Strait of Hormuz since early March * This is coupled with a Russian diesel export ban as Ukrainian drone strikes aimed at disrupting Russia's war machine take refinery capacity offline. * The U.S. runs a diesel surplus of 1.5m b/d and is the largest diesel exporter in the world, Platts reported. * A complete diesel ban could initially place downward pressure on domestic diesel prices, but the resulting surplus would create significant financial and operational pressure for U.S. refiners, Platts forecasts. * In the event of a complete ban, Platts sees U.S. refiners needing to cut crude runs by 2m b/d (10%) to eliminate the resulting diesel surplus, driving refining ma
President Trump said at the UN General Assembly Sep. 22 that he is considering restricting diesel exports, a move which appears to have blindsided oil executives. " * Diesel prices have hit new record levels, prompting the president to consider a ban. This has been driven by lost volumes due to disruption of crude and product flows through the Strait of Hormuz since early March * This is coupled with a Russian diesel export ban as Ukrainian drone strikes aimed at disrupting Russia's war machine take refinery capacity offline.
S. 5m b/d and is the largest diesel exporter in the world, Platts reported. S. refiners, Platts forecasts.
S. refiners needing to cut crude runs by 2m b/d (10%) to eliminate the resulting diesel surplus, driving refining margins to near zero. * "The problem with export bans is that they don't increase domestic supply, but may lower supply, causing a further rise in prices," Gbenga Ajilore, chief economist at Washington-based think tank the Center on Budget and Policy Priorities, said. S.
oil executives thought they had persuaded the Trump administration to keep diesel shipments flowing after registering their opposition to a ban. S. oil companies stand to lose billions of dollars in revenue if they aren't allowed to ship diesel abroad, the WSJ said.