Washington: US President Donald Trump ruled out a ban on American diesel exports after European countries agreed to put more diesel into the market, saying the additional supply would help bring down energy prices.
Trump told reporters at the White House before departing aboard Marine One that he had personally asked Europe to make more diesel available.
“Europe has a lot of diesel, and they’re, they’re gonna be making a major world contribution, and so are we,” Trump said.
“And we’re not gonna be, uh, doing the export ban. We’re gonna be doing what we’re supposed to do,” he added.
The President linked the expected increase in supply to the conflict involving Iran and predicted that oil prices would fall once the situation was resolved.
“We’re gonna have a lot of oil very shortly, as soon as Iran ends, which won’t be long,” Trump said.
“Not gonna be long, and you’re gonna have oil go down to the price it was before, maybe even lower than I got it at the beginning.”
Asked later whether a diesel export ban was officially off the table following the European move, Trump went further and said his administration had not intended to impose one.
“No, we were never gonna do it. I don’t think we ever, but basically, Europe was great because they’re putting a lot of diesel oil out there. They have diesel,” he said.
Trump said European countries were able to contribute because of their relatively high use and stocks of the fuel.
“They use diesel disproportionately more than most, and they did a great thing,” he said.
The President said the United States maintained a strong relationship with Europe and portrayed the move as a response to his request for additional supplies to enter the market.
“Oh, we have a very good relationship with Europe, and, uh, they wanted to do it because they have a lot of diesel,” Trump said.
“I said, ‘It would be great if you put it out in the market.’”
His remarks came as energy supplies and prices have become closely tied to developments in the Middle East and disruptions affecting global oil and refined-product markets.
The Group of Seven countries on Friday agreed to a coordinated release through the International Energy Agency of 100 million barrels of oil and fuel products over four months. The G7 said the programme would begin immediately and include a substantial release of diesel during the first 20 days.
The International Energy Agency said pressure on diesel supplies remained particularly severe. It said Middle Eastern crude exports had recovered significantly, but flows of refined products remained constrained. The agency said around 325 million barrels from an earlier 400-million-barrel collective action announced in March had already been released, helping cover supply shortages and reassure global markets.
(IANS)
