Diesel Export Ban Off The Table? Ted Cruz Relays White House Assurances To Refinery Heads
As of early Saturday morning, AAA data put the national average retail diesel price at about $6.48 a gallon, slightly below its recent record high, while Brent crude settled on Friday around $104.30 a barrel. The modest pullback leaves fuel costs elevated and maintains pressure on the White House to deliver relief before the midterms.
The Trump administration's messaging on a potential diesel export ban has exposed differing views over how to address the global refining crisis that could soon morph into an economic shock (Read Apollo's warning). President Donald Trump has been for a diesel export ban, while Energy Secretary Chris Wright has opposed a blanket ban and instead encouraged industry measures to increase domestic supply.
Politico reported midweek that the administration was preparing a potential 90-day export ban. By late Friday, however, Senator Ted Cruz told refinery heads he had received White House assurances that a ban would not move forward.
Bloomberg reports that Cruz relayed those White House assurances to refinery heads during a call by the American Fuel and Petrochemical Manufacturers Association.
Here's more color from the outlet:
The president wants to see pump prices fall and is evaluating all options on the table, a White House official said. Representatives for Cruz and the American Fuel and Petrochemical Manufacturers Association, which conducted the call, did not immediately respond to requests for comment.
To be sure, the counsel is consistent with a message that's been delivered for months by some of Trump's top deputies, who've consistently warned that diesel export curbs would ultimately cause more harm than good.
. . .
Cruz, a Republican from Texas, described having received assurances from the White House, not specifically from the president. He did not provide more specifics on who had ruled out an export ban, the people said.
Other tools in the Trump administration's toolkit could target taxes and regulatory costs. Officials have discussed allowing dyed red diesel, normally reserved for off-road use, on highways. Such a change could suspend some diesel taxes, including the federal levy of roughly 24 cents a gallon.
Energy Secretary Chris Wright, the former chairman and CEO of Liberty Energy, has warned about the dire ramifications of a diesel export ban and instead emphasized voluntary industry changes to increase domestic diesel supply.
"We will not cease exports of US diesel," Wright said Wednesday, while leaving room for adjustments to where fuel from US refineries flows.
Last week, Barclays refining and midstream analyst Theresa Chen warned clients that a proposed U.S. diesel export ban would be "detrimental to the US refining complex and unlikely to provide the intended price relief."
Chen pointed out one major problem: keeping diesel inside the country does not guarantee it can reach gas pumps.
Goldman Sachs energy analyst Nikhil Bhandari warned clients early last week that the global refining system will be stretched through 2027, with diesel and gas prices expected to remain elevated.
Read: Goldman Warns Diesel Crisis Is Setting Up The Next Gasoline Squeeze: Here's How
On March 10, JPMorgan's head of commodity research, Natasha Kaneva, laid out the six options the Trump administration has to combat higher oil prices (read here, as the administration's next move could be to reduce fuel taxes).
Tyler Durden Sat, 09/26/2026 - 07:30
Continue reading...
[ H/T ZeroHedge ]
As of early Saturday morning, AAA data put the national average retail diesel price at about $6.48 a gallon, slightly below its recent record high, while Brent crude settled on Friday around $104.30 a barrel. The modest pullback leaves fuel costs elevated and maintains pressure on the White House to deliver relief before the midterms.
The Trump administration's messaging on a potential diesel export ban has exposed differing views over how to address the global refining crisis that could soon morph into an economic shock (Read Apollo's warning). President Donald Trump has been for a diesel export ban, while Energy Secretary Chris Wright has opposed a blanket ban and instead encouraged industry measures to increase domestic supply.
Politico reported midweek that the administration was preparing a potential 90-day export ban. By late Friday, however, Senator Ted Cruz told refinery heads he had received White House assurances that a ban would not move forward.
Bloomberg reports that Cruz relayed those White House assurances to refinery heads during a call by the American Fuel and Petrochemical Manufacturers Association.
Here's more color from the outlet:
The president wants to see pump prices fall and is evaluating all options on the table, a White House official said. Representatives for Cruz and the American Fuel and Petrochemical Manufacturers Association, which conducted the call, did not immediately respond to requests for comment.
To be sure, the counsel is consistent with a message that's been delivered for months by some of Trump's top deputies, who've consistently warned that diesel export curbs would ultimately cause more harm than good.
. . .
Cruz, a Republican from Texas, described having received assurances from the White House, not specifically from the president. He did not provide more specifics on who had ruled out an export ban, the people said.
Other tools in the Trump administration's toolkit could target taxes and regulatory costs. Officials have discussed allowing dyed red diesel, normally reserved for off-road use, on highways. Such a change could suspend some diesel taxes, including the federal levy of roughly 24 cents a gallon.
Energy Secretary Chris Wright, the former chairman and CEO of Liberty Energy, has warned about the dire ramifications of a diesel export ban and instead emphasized voluntary industry changes to increase domestic diesel supply.
"We will not cease exports of US diesel," Wright said Wednesday, while leaving room for adjustments to where fuel from US refineries flows.
Last week, Barclays refining and midstream analyst Theresa Chen warned clients that a proposed U.S. diesel export ban would be "detrimental to the US refining complex and unlikely to provide the intended price relief."
Chen pointed out one major problem: keeping diesel inside the country does not guarantee it can reach gas pumps.
Goldman Sachs energy analyst Nikhil Bhandari warned clients early last week that the global refining system will be stretched through 2027, with diesel and gas prices expected to remain elevated.
Read: Goldman Warns Diesel Crisis Is Setting Up The Next Gasoline Squeeze: Here's How
On March 10, JPMorgan's head of commodity research, Natasha Kaneva, laid out the six options the Trump administration has to combat higher oil prices (read here, as the administration's next move could be to reduce fuel taxes).
Tyler Durden Sat, 09/26/2026 - 07:30
Continue reading...
[ H/T ZeroHedge ]
