U.S. diesel futures fell 4% Wednesday to $4.7437 a gallon after Politico reported a 90-day ban on exports; a White House official said the report was incorrect. Trump backed a ban Tuesday, but Energy Secretary Chris Wright said no decision had been made.
Energy Secretary Chris Wright said an export ban would not work and could raise gasoline and jet-fuel prices. He said the administration was working with refiners on a voluntary, cooperative effort to increase diesel supply, but gave no details.
AAA put average U.S. diesel at $6.52 a gallon, near a record; inventories were below 97 million barrels, about 13% under the five-year seasonal average, straining farming, transportation and other industries. Wars in Iran and Ukraine had sharply cut exports from major suppliers including Russia, Saudi Arabia and the United Arab Emirates. An export ban would raise diesel prices globally, while analysts warned it could lower U.S. prices and refinery margins; reduced refinery runs could also cut supplies of gasoline and other products.
