The United States aims to bring more diesel to the market, Energy Secretary Chris Wright said, as fuel prices rise amid the Iran war.
Wright did not give any specific details on how or when the new diesel would be added. Diesel prices in the U.S. have climbed by around 40% since the start of the war.
“We do have some ideas on diesel, that we can bring extra diesel to the marketplace. And I think we will see that happen before too long,” Wright said in a CNBC interview.
According to Wright, the U.S. is not considering limiting diesel exports. “You don’t want to interrupt the free flow of energy trades,” he said.
“If we blocked exports, we’d have to turn down our own refineries and produce less oil and less refined products. That wouldn’t be productive for the United States, certainly wouldn’t be productive for the world.”
An increase in heavy crude from Venezuela could also be used to produce more diesel in U.S. refineries, Wright said. The U.S. has begun releasing a slate of 172 million barrels from its strategic oil reserves, though Wright said further releases were not likely.
Oil prices sank today after President Donald Trump said the U.S. would postpone all strikes on Iran’s energy infrastructure for five days. Brent crude was trading 10.3% lower at US$100.60 per barrel by 9 am AEDT.
Trump also claimed that the U.S. and Iran had begun negotiations towards an eventual settlement of the war, though Iran said no talks have taken place.
