EU imports of US diesel oil increase, alert to possibility of Trump ban on exports

Recently, imports of US diesel oil increased significantly and then suddenly fell.

Supply is tight due to the Ukraine war... Impact on the global energy market when implemented

(Seoul = Yonhap News) Reporter Lim Hwa-seop = The American daily Wall Street Journal (WSJ) reported on the 24th (local time) that the European Union (EU) was shocked by U.S. President Donald Trump's remarks that mentioned the possibility of an export ban in response to the surge in diesel prices in the U.S., and began working to persuade the U.S. government not to take such a measure.

According to WSJ, officials in various European countries are busy trying to persuade the Trump administration to refrain from imposing diesel export controls.

“We expect our close partners to consult with each other before taking any action that affects the common market,” said European Commission spokesman Olof Gil.

The EU is importing large quantities of US diesel, crude oil, and liquefied natural gas (LNG), replacing the quantities it previously purchased from Russia and the Middle East.

The EU's imports of US crude oil and petroleum products increased by 30% in the first half of this year compared to the same period last year, and gas imports increased by 18%.

The United States has not yet finalized specific plans for diesel export controls, but the EU's concerns grew as President Trump mentioned the possibility of taking such measures on the 22nd.

Afterwards, the surge in diesel futures prices seemed to calm down somewhat as Energy Secretary Chris Wright suggested that there would be no blanket export ban, but eventually rebounded again and approached an all-time high.

According to the U.S. Energy Information Administration (EIA), the national average retail price of diesel has recently broken all-time highs, rising to $6.529 per gallon as of the 21st, the latest count.

WSJ pointed out that if the United States implements any form of diesel export ban while diesel supply is already tight due to the war in Iran and Ukraine, it is highly likely that shock waves will spread to the global energy market.

The impact is expected to be particularly large in Europe.

From March to July of this year, a quarter of EU diesel imports were from the United States, and in August, this proportion exceeded 60%.

The WSJ explained that one of the suppliers that had been supplying diesel to Europe recently stopped operating due to the Houthi rebels' attack on a Saudi Arabian oil refinery near the Red Sea.