WASHINGTON/BRUSSELS/PARIS, Oct 1 (Reuters) - The Trump administration has told Germany and France to draw down emergency diesel inventories to help ease soaring global fuel prices or face a potential US diesel export ban, according to three people close to the discussions.
The warning marks an escalation in pressure on Europe as US President Donald Trump considers a potential ban to help bring down US fuel prices ahead of November’s midterm elections.
My ban, the proposed ban concerns diesel fuel, not crude. That said though, it makes absolutely no sense for companies to sell diesel far below market value during a global oil crisis.
If companiea can’t export diesel at a reasonable price then the first action would not to be to cut prices domestically, but to try and cut production. Which then also impacts gasoline and kerosine prices.