Trump: "Diesel exports should be banned"

[Financial News]  

U.S. President Donald Trump said on the 22nd (local time) that diesel exports should be banned. He declared his support for an export ban after Treasury Secretary Scott Bessent said he was assessing the effectiveness of banning diesel exports.
With his approval rating plunging to 32% amid soaring fuel prices ahead of the Nov. 3 midterm elections, President Trump is increasingly likely to decide to control export volumes and at least bring diesel prices under control.
According to foreign media outlets including the Financial Times (FT) and CNBC, Trump made the remarks to reporters after meeting Ukrainian President Volodymyr Zelenskyy at the United Nations Headquarters in New York. He stressed, "I have been saying that we should not export diesel," adding, "I told advisers in the administration this, and I have been saying this all along."
Earlier, Republican Party lawmakers led by Sen. Chuck Grassley (Iowa) urged the administration to halt diesel exports to stabilize diesel prices. They argued that diesel needed by industries including agriculture and manufacturing should be supplied to the United States rather than exported abroad to bring fuel prices under control.
Treasury Secretary Scott Bessent, who attended the meeting that day, said the United States administration was currently assessing the effectiveness of export-control measures. He said, "We are assessing whether it would be feasible from the standpoint of overall refining capacity and whether full or partial controls would work."
According to the FT, the Trump administration held an entirely different position as recently as the previous day, the 21st. It had drawn a line under the issue, saying that an export ban was not under consideration.
Last week, Interior Secretary Doug Burgum flatly said, "We could consider it if we determined that an export ban could lower prices, but that is not the case now."
However, Trump appears to be changing his position as he grows increasingly anxious over surging oil prices ahead of the midterm elections in November.
According to the American Automobile Association (AAA), U.S. diesel prices hit $6.53 per gallon on the day, setting a new all-time high. They topped $8 in California. Diesel prices, which were below $3.70 just a year ago, have nearly doubled.
Diesel exports have halted after Russian refining facilities were hit amid the war in Ukraine. In addition, diesel exports from Gulf states have been disrupted as the Strait of Hormuz was blocked by the war with Iran that Trump began on Feb. 28. U.S. refiners are turning to exports instead of selling domestically because they can earn substantial profits from overseas sales.
Meanwhile, on the 20th, Trump also called President Zelenskyy and pressured him to stop Ukraine from attacking Russian oil-refining facilities with drones.

[email protected] Song Kyung-jae Reporter