US Energy Secretary predicts diesel prices will continue to fall until next spring

(Washington = Yonhap News) Correspondent Hong Jeong-gyu = U.S. Secretary of Energy Chris Wright predicted on the 4th (local time) that diesel prices in the U.S. will fall below $6 per gallon due to diesel emissions from European countries.

Minister Wright appeared on CBS that day and said about the agreement of the G7, mainly major European countries, to release 100 million barrels of diesel and crude oil reserves over the next four months, calling it "a very big step."

"(Europe) naturally reserves a lot of diesel (for emergency purposes) because they don't refine enough diesel to supply their own economy," Wright said.

He predicted that the price of diesel fuel in the U.S. fell by more than 20 cents per gallon following the news of Europe's release of oil reserves, and that "we will soon see it drop below $6 (per gallon)."

He also said, “We will not only lower diesel prices in the U.S., but also lower diesel prices in Europe and around the world. We will lower diesel prices in the U.S. and around the world throughout the winter.” In the meantime, with refinery operations increasing, “we will see diesel prices continue to fall in the spring of next year,” he said.

When asked whether he thought President Donald Trump's pressure card to ban U.S. diesel exports was effective in bringing about this agreement from the G7, Secretary Wright responded, "It may have been quite helpful in achieving the agreement that was just concluded (release of G7 oil reserves)."

President Trump said several times that he could ban diesel exports, and Secretary Wright and the U.S. oil refining industry were in a position to dissuade him from doing so. It was reported that the Trump administration recently issued an ultimatum to Europe, threatening to ban U.S. diesel exports unless Europe releases its strategic oil reserves.

Minister Wright predicted that the downward trend in prices will continue as "(energy) supply coming through the Strait of Hormuz is increasing" and "U.S. gasoline production is currently at an all-time high, and as the peak summer driving season ends, gasoline demand has begun to decline."

However, when asked if there was a guarantee that an 'October Surprise' would not occur where Iran would raise energy prices by escalating military tensions this month ahead of the U.S. midterm elections (November 3), he answered, "There is no such thing as a guarantee."

Regarding the possibility of an escalation of the war with Iran in November, when the US military's third aircraft carrier strike group arrives in the Middle East, he said, "The president is always making plans for contingencies and is always negotiating."