Trump's oil jawboning loses punch as wars spiral
USO•Trump's statements and policy moves have had limited effect on energy prices as conflicts in the Middle East and Ukraine disrupt supply. Brent has stayed above $100 a barrel for much of the past few weeks, while US diesel prices reached a record $6.50 a gallon.
1. Oil rhetoric fades
Trump's public statements about a deal with Iran once helped keep oil prices below record highs, but the July ceasefire collapsed and conflict spread across the region. Brent has remained above $100 a barrel for most of the past few weeks despite crude exports through the Strait of Hormuz recovering to roughly 80%-90% of pre-war levels.
2. Diesel supply strains
US diesel prices climbed to a record $6.50 a gallon as the Middle East conflict and Ukraine's attacks on Russian energy infrastructure reduced global refining capacity. Trump said Russia would resume some diesel exports, but the promised 15 million barrels over three months amount to about half a day of global diesel consumption.
3. Limited market response
The article says about 2 million barrels per day of refining capacity has been lost in Russia and the Middle East, while global oil inventories have fallen sharply since the Iran war began. US wholesale diesel prices were flat on Monday, European diesel futures fell 2%, and Brent rose around 2% to nearly $107 a barrel.
