The Zhitong Finance App learned that EU officials are increasingly optimistic that the US will not implement a ban on diesel exports, which may exacerbate supply shortages in Europe. EU Energy Commissioner Dan Jorgensen told reporters in Dublin on Tuesday that he had sent a “very clear signal” to US Energy Secretary Chris Wright that such a ban was not in anyone's interest. Jorgensen welcomed Wright's statement that he did not support the move.
Jorgensen said before the EU energy ministers meeting that it is necessary to “allow energy to flow as freely as possible during these difficult times.” He said last week that he would consider delaying implementation of some methane emission rules for importing countries by one year. This climate bill has sparked strong discontent from the US government.
US President Trump said on Sunday that he is “very seriously” considering banning diesel exports as he faces increasing pressure to control US fuel prices. This move has heightened concerns that Europe may face a further shortage of diesel. Currently, nearly 20% of European diesel imports have been affected by the suspension of shipping in the Strait of Hormuz.
French President Emmanuel Macron last week called on the European Commission to relax diesel rules so that refiners can produce more diesel.
International Energy Agency (IEA) Executive Director Fatih Birol said in Dublin on Tuesday that Europe “is one of the most vulnerable regions, if not the most vulnerable,” as far as diesel supplies are concerned. “Today, about 50% of our diesel comes from the US.”
Ireland's Energy Minister Dara O'Brien also said that after visiting the US and meeting with the US Chamber of Commerce last week, he felt that the Trump administration might suspend implementation of the diesel export ban. He added that any such action would also hurt US refiners. However, he said the EU should not take it lightly.
O'Brien also said, “What I learned from my American colleagues last week is that they don't think this will happen. But we have to be alert.”