U.S. President Donald Trump said on Wednesday that he is still "considering" banning diesel exports in an attempt to control high energy prices, but he noted that doing so could have a "negative impact" on gasoline prices.
When asked in the Oval Office whether he had decided to implement the ban, Trump stated that his aides believed it would be beneficial for diesel, "but it might push up the prices of other things as well."
"And I think we are in a good position now, because oil prices are going to start to fall," Trump added.
Just three days ago, Trump also stated that he was "very seriously" considering this measure, despite the warnings from the American oil industry that it would force refineries to cut production and ultimately drive up domestic energy prices in the United States.
However, his latest statement seems to indicate that his attitude towards the export ban has softened, although he has not completely ruled out this possibility.
"We are in a very good position," Trump said, emphasizing that crude oil exports through the Strait of Hormuz have recently rebounded.
The Strait of Hormuz is an important passage for global oil trade. After the United States and Israel attacked Iran in late February, shipping through this strait was temporarily disrupted. However, this week, the daily average exports here have returned to pre-war levels.
Standing beside the sturdy desk, Energy Minister Chris Wright stated, "You have already seen the diesel prices fall over the past week. I believe that in the coming weeks and days, you will see a further significant decrease."
However, Wright also acknowledged that due to export losses caused by conflicts between Russia and the Middle East, as well as the impact from China, the supply of diesel is "tense."
“So, there are quite a few interruptions. But the operating rates of refineries in the United States are at historically high levels,” Wright said, “and you’ll hear from our friends in Europe that they will be releasing new diesel supplies onto the market. This will clearly push down diesel prices.”
When a reporter asked Wright if he had ever suggested not implementing a diesel export ban, Trump interjected, "No, I think that's something we consider and discuss every day."
"But this does seem to have a negative impact on gasoline," he said, "Gasoline prices will rise slightly, while diesel prices will fall slightly."
Trump also reiterated that he believes Russia's war against Ukraine "is indeed the biggest problem diesel is facing."
As ongoing conflicts in Iran and Ukraine severely disrupt global energy flows, diesel prices have soared to record highs. Meanwhile, oil prices rose on Wednesday due to another stall in negotiations between the United States and Iran.
