Trump rules out diesel export ban after G7 fuel release

President Donald Trump said Friday that the United States will not ban diesel exports. The announcement came hours after Group of Seven leaders agreed to release 100 million barrels of oil and fuel over four months, starting with a large diesel release in the first 20 days.thehill+1

"Europe has a lot of diesel, and they're going to be making a major world contribution, and so are we, and we're not going to be doing the export ban," Trump told reporters before he left the White House for a campaign trip. Asked whether the ban was now off the table, he said, "It was never really on the table. But what Europe did was a great thing".nampa+1

That is a shift in tone. Last week Trump appeared to back a ban as diesel prices hit records, saying, "I've called for it within my people." Energy Secretary Chris Wright and other officials later pushed back on the idea.thehill

What the G7 agreed

French President Emmanuel Macron chaired the leaders' videoconference. In their joint statement, the leaders said they would carry out "a coordinated release through the IEA of 100 million barrels to begin immediately over four months, including a frontloaded substantial diesel release within the first 20 days". Members also agreed to "refrain from export restrictions on energy and energy products between G7 countries." They pledged to coordinate refinery maintenance so that several plants are not shut down at the same time.news.yahoo+1

Earlier, Trump posted on Truth Social that "Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil". Macron denied that Europe had been pressured into the deal. "The tone of our discussion was not one of threats; it was constructive," he said, adding that Trump had been "very clear" there would be no export ban.politico

Just hours before the deal, the European Commission had rejected the threat outright. "A ban would not be beneficial to anyone. It would undermine our trust in the United States as a reliable partner," spokesperson Anna-Kaisa Itkonen said. According to Politico Europe, U.S. diesel makes up more than half of Europe's imports of the fuel.yahoo+1

Prices and politics

According to AAA, U.S. diesel averaged \$6.37 a gallon on Friday, down from a record \$6.52 on Sept. 22. Prices have climbed during the eight-month Iran war, and the Nov. 3 midterm elections are approaching. In Britain, the average price of diesel passed £2 a litre for the first time.thesun+1

U.S. oil prices fell after the G7 statement. Brent crude briefly dropped below \$100 a barrel, then rose again on reports of renewed fighting involving Saudi Arabia and Yemen's Houthis. Pavel Molchanov of Raymond James said it was still unclear whether the 100 million barrels are new or part of a 426-million-barrel release announced in March.news4jax+1

Analysts had warned that a U.S. ban could backfire by cutting gasoline supplies. Jim Krane of Rice University's Baker Institute warned that the stock release carries its own risk: "Draining stocks will reduce retail fuel prices for a while, at the cost of leaving Europe with less emergency cover".news4jax