U.S. Scraps Diesel Export Ban Option After G7 Agreement
- Input
- 2026-10-03 04:06:56
- Updated
- 2026-10-03 04:06:56
The Donald Trump administration ultimately scrapped the diesel export ban option on April 2 (local time), following an agreement among the G7.
When asked whether the G7 agreement meant that a ban on diesel exports had been ruled out, the White House replied that it would honor the commitments in the joint statement, according to the Financial Times (FT).
The G7 agreed that day to release 100 million barrels from strategic reserves over the next four months, coordinated by the International Energy Agency (IEA). The joint statement signed by the G7, including the United States, says, "We will avoid restrictions on energy and energy-product exports among G7 countries." The statement also added that it would rule out restrictions on producers that could exacerbate market tensions.
The G7, including the United States, made clear that refiners would be free to operate, including to export, and that no export ban would be imposed.
French President Emmanuel Macron said the G7 "had agreed not to impose any restrictions on exchanges of crude oil and energy products among member states."
After the announcement, European diesel futures continued to decline, with the benchmark plunging 8% to $1,337.75 per ton. It fell to its lowest level since early last month. Wholesale diesel prices at New York Harbor also dropped nearly 5% to $4.43 per gallon.
According to diplomatic sources, the White House pressured Europe to release at least 100 million barrels and threatened to ban diesel exports if the demand was not accepted.
The oil industry in the United States, which had opposed the export ban, welcomed the agreement.
The American Petroleum Institute (API) said in a statement from a spokesperson, "We welcome the administration's efforts to secure G7 coordination on the release of 100 million barrels of crude oil and refined petroleum products."
President Donald Trump wrote on his Truth Social platform that day that Europe had "just agreed to release massive diesel inventories" and that "the process will be implemented immediately."
[email protected] Song Kyung-jae Reporter