White House weighs a diesel export ban and taps the Strategic Petroleum Reserve

The White House held talks on a diesel export ban as the US fuel crisis deepened^1,2. US energy secretary Chris Wright held calls with UK officials on Monday, and Treasury Secretary Scott Bessent also spoke to counterparts, according to people familiar with the talks².

In announcing a new release of oil from US reserves, Wright publicly pressed European countries to fulfil their commitments^4,7. The Energy Department said the United States will release 40 million barrels of crude from the Strategic Petroleum Reserve as fuel prices surge^5,8. Semafor reported that the US will offer to loan energy producers up to 40 million barrels of oil¹².

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Wright said the US and Japan have delivered on their commitments under the agreement, but that several European member countries have lagged^5,8. The White House urged the EU to draw down diesel inventories, working through the agency that coordinates emergency oil stockpiles^4,7. US Interior Secretary Doug Burgum had hinted at the plan earlier, telling reporters that it is a fact that the Europeans have a lot of stock⁹.

A second measure is also on the table. The White House is weighing red-dyed diesel relief, which Wright and industry analysts have warned could disrupt refinery economics and other fuel supplies⁶. The BBC said the threatened export ban aims to protect US consumers from rising costs, but could trigger major economic waves if it were to happen¹⁰.

What to watch

Trading partners are preparing for the ban. Canada’s energy minister said the country has contingency plans in case the US bans diesel exports, and voiced support for the perspective of Energy Secretary Wright^3,13. In the United Kingdom, John Healey said the government is in talks with the US over the threat to stop exports¹¹.

Prices are already at the top of the range. UK diesel prices have hit an all-time high, according to the RAC, with the US-Israel war with Iran disrupting global oil supplies¹⁴. Reporting on the European leg noted that Washington might ask Europe to tap into its diesel reserves rather than act alone⁹. The Financial Times framed the timing around the approaching midterms².

The Irish Times reported the export ban deliberations as the US fuel crisis deepened, with energy secretary Chris Wright at the centre of them¹.