Market Flux Event
Energy Secretary Wright Breaks With Trump Over Diesel Export Ban, Warns It Would Lift Gasoline and Jet Fuel Prices
Read this in the Market Flux appUS Energy Secretary Chris Wright publicly broke with President Donald Trump on Wednesday, saying a ban on American diesel exports would not work and would push up gasoline and jet fuel prices rather than providing relief at the pump. Trump had backed the idea a day earlier as diesel prices surged to record highs in the United States and Europe, driven by the wars in Iran and Ukraine, with US pump prices topping $6.50 per gallon.
Wright's remarks put him in direct conflict with his own administration's stated direction and with a growing chorus of Republican lawmakers, including Sen. Chuck Grassley and Rep. Tim Burchett, who have called for export restrictions. Louisiana Governor Jeff Landry has separately pushed for a 90-day ban on US diesel exports. A White House official had told media as recently as Monday that no export ban was under consideration, before Trump's Tuesday endorsement shifted the administration's posture.
Oil prices climbed back above $100 a barrel on the day, snapping a five-day losing streak, as European diesel futures surged on the export-ban speculation. Broader energy markets also reflected persistent supply anxieties, including ongoing attacks on shipping in the Strait of Hormuz and uncertainty over Saudi Arabia's East-West pipeline flows. Diplomats gathering at the United Nations General Assembly discussed potential US-Iran stability talks, but traders signaled they would wait for concrete progress before pricing in any lasting relief.
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Sources
- DeItaoneWRIGHT SAYS US DIESEL EXPORT BAN WOULD RAISE GASOLINE AND JET FUEL PRICES
- ZerohedgeUS ENERGY SECRETARY CHRIS WRIGHT SAYS DIESEL EXPORT BAN WOULD NOT WORK SAYS DIESEL EXPORT BAN WOULD RAISE GASOLINE AND JET FUEL PRICES
- FirstSquawkWRIGHT: US DIESEL EXPORT BAN WOULD RAISE GASOLINE AND JET FUEL PRICES
- JarrettRenshawNEWS: U.S. Energy Secretary Chris Wright on Wednesday said a U.S. ban on diesel exports would not work and could push up gasoline and jet fuel prices, putting him at odds with President Donald Trump, who on Tuesday backed the idea as diesel prices have surged to record highs in the United States and Europe amid the wars in Iran and Ukraine.
- ReutersUS Energy Secretary Wright says diesel export ban would not work