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Soaring diesel prices have some shippers looking to rail as a cheaper alternative to trucks. SCOTT OLSON/GETTY IMAGES |
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President Trump said he was considering restricting diesel exports in an effort to curb soaring fuel prices. It is an idea that is quickly gaining traction with more Republicans, the WSJ’s Meridith McGraw, Benoît Morenne and Collin Eaton write. |
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Treasury Secretary Scott Bessent also said the U.S. was examining the feasibility of a diesel export ban and whether a full or partial ban would work. Commercial diesel inventories in the U.S. have dropped 11% since the start of the war with Iran, while exports are up 31% on a weekly basis, according to the Energy Information Administration. |
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The oil industry is strongly opposed to a ban, given U.S. fuel makers are likely to lose the trust of some overseas buyers and lose money. Analysts said a ban would likely prompt domestic refineries to process less crude since they will have lost a slew of overseas customers. In that scenario, they would make less gasoline and jet fuel as well, leading to higher prices. |
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Energy Secretary Chris Wright, Interior Secretary Doug Burgum and Jarrod Agen, the executive director of the National Energy Dominance Council, have all been opposed to the idea, according to an administration official. |
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• Saudi Arabia was running tests on the critical East-West oil pipeline that was recently knocked out by drone strikes, a step toward restoring flows that bypass the Strait of Hormuz. (WSJ) |
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