Trump Administration Eyes Fuel Export Ban as Diesel Hits Record $6.39 a Gallon
Updated
Updated · Yahoo Finance · Sep 17
Trump Administration Eyes Fuel Export Ban as Diesel Hits Record $6.39 a Gallon
3 articles · Updated · Yahoo Finance · Sep 17
Summary
U.S. diesel prices reached a record $6.39 a gallon Thursday, fueling expectations the Trump administration could announce a fuel export ban before the midterm elections to try to curb domestic costs.
Oil near $100 a barrel and a worsening Middle East-linked supply crunch are driving that pressure, with strategists arguing the current shortage looks more severe than the spring Iran-US war shock.
California diesel has climbed more than $1 in a month to above $8.34 a gallon, and GasBuddy said the national average could hit $6.60 within days, topping the inflation-adjusted 2022 peak.
John Thune said Tuesday he was open to exploring a diesel export ban, but analysts warned restricting exports could prompt refineries to cut distillate output and tighten supplies of gasoline, jet fuel and other products.
That risk has already started to reshape markets: WTI surged earlier this week and narrowed its spread with Brent as traders priced in tighter U.S. fuel availability and broader global disruption.