US President Donald Trump on Friday ruled out a ban on American diesel exports after European countries agreed to increase diesel supplies to the market, saying the additional availability would help bring down energy prices.
Speaking to reporters at the White House before departing aboard Marine One, Trump said he had personally asked European countries 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.
Trump linked the expected increase in energy supplies 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 said his administration had never 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 diesel consumption and stockpiles.
“They use diesel disproportionately more than most, and they did a great thing,” he said.
The President also said the US maintained a strong relationship with Europe and described the move as a response to his request for additional supplies to be released into 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.'”
Trump’s remarks came as energy supplies and prices have become increasingly linked to developments in the Middle East and disruptions affecting global crude 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. While Middle Eastern crude exports had recovered significantly, flows of refined products remained constrained, it said.
The agency added that around 325 million barrels of an earlier 400-million-barrel collective action announced in March had already been released, helping address supply shortages and reassure global markets.