President Donald Trump said Wednesday he is still “considering” banning diesel exports to combat rising energy prices, but noted that doing so could have a “negative impact on gasoline.”
Asked whether he had decided on a ban in the Oval Office, Trump said aides believed it would help diesel, but “it could drive up prices for other things.”
Trump added: “I think we’re in a good position because oil prices are going to start coming down.”
Just three days ago, President Trump said he was considering the measure “very seriously” despite warnings from the U.S. oil industry that it would force refineries to cut production and ultimately lead to higher domestic energy prices.
But his recent comments seem to indicate that he is cooling off on the idea of an export ban, although he has refused to rule it out completely.
President Trump highlighted the recent resurgence of oil exports through the Strait of Hormuz, saying, “We are in a very good place.”
The strait is a major transit point for global oil trade, and shipping traffic was disrupted after the United States and Israel attacked Iran in late February. But this week daily exports returned to pre-war levels.
“You saw diesel prices go down last week, and I think you’re going to see them go down significantly in the coming weeks and days,” said Energy Secretary Chris Wright, who stood next to President Trump at the Resolute desk.
But Mr Wright acknowledged that diesel supplies were “tight” due to export losses related to conflicts in China, as well as Russia and the Middle East.
“That means there will be a lot of interruptions. But American refiners are operating at record high prices, and we’re going to hear announcements from our European friends about new diesel coming into the market, which will meaningfully lower diesel prices,” Wright said.
When a reporter asked if he had advised Wright to oppose the diesel export ban, Trump interjected, saying, “No, I think that’s something we’re thinking about and we talk about it every day.”
“But it seems to have a negative impact on gasoline,” he said. “It’s going to go up a little bit and diesel is going to go down a little bit.”
President Trump also reiterated his claim that Russia’s war with Ukraine is “really the biggest problem for diesel.”
Diesel prices have soared to record highs as the conflict between Iran and Ukraine continues, wreaking havoc on global energy flows. Oil prices rose on Wednesday as prospects for negotiations between the US and Iran appeared to be stalling again.
