Diesel surpasses $6, Trump supports a ban on U.S. exports

Donald Trump expressed his support on Tuesday for a ban on U.S. diesel exports, a measure advocated by several political leaders to help curb the surge in energy prices in the United States. His administration is still examining the feasibility of a total or partial export ban.

The U.S. president voiced his backing for this option on the sidelines of the UN General Assembly in New York. Treasury Secretary Scott Bessent indicated that authorities are exploring various possible approaches, without announcing an immediate decision.

The pressure is mounting. Diesel prices exceeded $6 per gallon in the United States in September, reaching an unprecedented level, as conflicts in Iran and Ukraine have reduced the availability of refined products from several major producers, including Russia, Saudi Arabia, and the United Arab Emirates.

U.S. stock levels are raising concerns. According to the Energy Information Administration, stocks fell to 107.9 million barrels as of September 11, the lowest level for this time of year since records began in 1982. The agency anticipates persistently low reserves until the end of 2026.

An export restriction could increase the volumes available in the U.S. domestic market, but it could also tighten supply abroad. The United States has become a significant supplier of diesel to Europe since the reorganization of flows caused by the European embargo on Russian products.

The global diesel shortage could extend until 2027, with refiners and traders having less fuel to store. The EIA noted in June that the increase in U.S. petroleum product exports has been particularly pronounced for diesel and jet fuel since the disruptions in the Strait of Hormuz.

The debate comes less than six weeks before the U.S. midterm elections on November 3. Several Republican candidates engaged in tight races have urged the White House to take action on exports to alleviate the pressure on prices faced by households and businesses.