Responding to reporters at the White House about whether the plan to ban U.S. diesel exports had been abandoned, President Trump stated: “That option was never really considered. However, Europe’s action is very commendable.”
The American leader assessed that Europe “possesses abundant diesel supplies and they will make a significant contribution to the world .” He also pledged that Washington “will not impose an export ban, but will do what is necessary.”
Previously, on September 22nd, President Trump first mentioned the possibility of supporting a ban on diesel exports – a measure that, while contributing to lower costs for consumers in the world's number one economy , risks creating a supply shortage in the international market. Even as of October 1st, the White House leader stated that the US was still considering this option while simultaneously pressuring Europe to release its reserves.
The announcement to lift the US export ban came shortly after the Group of Seven (G7) industrialized nations agreed on the same day to release a total of 100 million barrels of diesel and crude oil from strategic reserves over the next four months, in an effort to ease supply tensions caused by the conflict in Iran .
Earlier on October 2nd, European Commission spokesperson Anna-Kaisa Itkonen stated that the European Union (EU) was ready to cooperate with the International Energy Agency (IEA) on the possibility of releasing fuel reserves to bring down energy prices.
The scale of the potential release remains unconfirmed, although France proposed releasing 50 million barrels of diesel, equivalent to about 6.7 million tons – in parallel with 50 million barrels of crude oil from the IEA's emergency reserves – on the morning of October 2 (local time).
George Shaw, a senior analyst for distillate products at Kpler, considers the proposed release of 50 million barrels of diesel to be a very significant amount. According to Kpler, the EU and the UK imported 24.25 million barrels of diesel from outside the region in September, meaning the proposed release would be equivalent to approximately double the monthly import volume.
Analysts agree that the impact on prices will depend on both the volume and speed at which the released fuel reaches the market.
Gasoline and diesel prices remain extremely high in Europe not only because of soaring international crude oil prices, but also because of rising costs and limited refining capacity. European refineries are operating at near full capacity and have virtually no room to increase production.
These restrictions leave Europe dependent on imported diesel fuel. Therefore, releasing refined products from EU countries' strategic reserves could be the quickest way to influence prices.
HA (according to VNA)Source: https://baohaiphong.vn/ong-trump-bac-kha-nang-my-ap-dat-lenh-cam-xuat-khau-dau-diesel-554852.html
