EU in high-level contact with US over reportedly planned diesel export ban, spokesperson says
USO•The European Union is in high-level contact with the United States over a reported plan for a 90-day diesel export ban, which the EU says could negatively affect both sides. US Energy Secretary Chris Wright has disputed the plan.
1. EU-US discussions
High-level contacts between the European Union and the US administration are ongoing over a reported US plan to ban diesel exports for 90 days. European Commission spokesperson Olof Gill said the EU expects close partners to consult before taking measures affecting shared markets.
2. Potential supply effects
Analysts have said a US diesel export ban would do little to ease American prices, while even a partial ban could lead to shortages in Europe and elsewhere. The EU is a net importer of diesel and would have to compete with buyers in Latin America, Africa and Asia for reduced supplies.
3. Fuel market pressures
Diesel prices have risen due to low inventories and disruptions caused by wars in Ukraine and the Middle East. Russia, the world's second-largest diesel exporter after the US, banned exports in July through the end of September. Analysts and traders have said a US ban could also reduce refinery output of crude, gasoline and other products, pushing up fuel prices.
