US President Donald Trump said that Washington will not impose a ban on diesel exports. The statement came hours after the G-7 countries agreed to release up to 100 million barrels of diesel and crude oil from their strategic reserves.
“We will not impose an export ban“, Trump told reporters. When asked if the measure had already been officially dropped, he replied that the US “never intended“ to implement it.
G-7 to release fuel from reserves
According to the G-7 decision, the coordinated release of stocks will be carried out through the International Energy Agency. The process should begin immediately and last four months, with a significant amount of diesel expected to be released to the market in the first 20 days.
In the joint decision, the countries also committed not to impose restrictions on the export of energy products among themselves. The measure is aimed at increasing supply on the market against the backdrop of a sharp increase in fuel prices.
Washington had been discussing the restriction for days
Just a day before announcing the cancellation of the ban, Trump said he was considering the possibility of restricting diesel exports. He indicated that he was discussing the measure with Energy Secretary Chris Wright and Interior Secretary Douglas Burgum.
The US president warned at the time that the restriction could lower diesel prices but lead to higher prices for gasoline and other goods. Energy Secretary Chris Wright also said a complete ban could have unintended consequences for other fuels.
The European Union has rejected the possibility of a US ban, saying it would not be beneficial to either country. Following the G7 decision, Trump said Europe has significant diesel reserves and will contribute to increasing global supply.
Sources: Reuters, RBC