EU Officials Express Cautious Optimism Over U.S. Diesel Export Threat

DUBLIN — Senior EU officials expressed cautious optimism Tuesday that U.S. President Donald Trump would renege on his threat to exports of diesel for 90-days to combat rising prices.

Irish Energy Minister Darragh O'Brien, whose government holds the EU's rotating presidency, told reporters ahead of an EU ministerial summit in Dublin that he had heard assurances from Trump administration officials in Washington D.C. last week that the ban was unlikely.

"Obviously, any 90-day diesel ban would have distinct impact on us in the EU," said O'Brien. However, "from the information that I was able to glean in D.C. last week, there doesn't seem to be a push to do that."

EU energy chief Dan Jørgensen echoed the sentiment, saying at the same summit Tuesday morning that he was "happy" to see public comments by [U.S. Energy Secretary] Chris Wright, who said a diesel ban wouldn't work.

Trump earlier this month appeared to endorse the idea of temporarily blocking exports of the fuel as prices rise due to the war in Iran and Moscow's imposition of restrictions on its exports following Ukrainian strikes on refineries.

Such a move would send shockwaves through European energy markets, with U.S. diesel accounting for over 50 percent of the EU's diesel imports and 10 percent of its consumption, according to S&P Global Energy.

"We're not going to be complacent about it," Darragh O'Brien said. "But when you talk to others around the administration as well, it doesn't look like that's something that would happen. I think there would be an impact for the United States themselves, the diesel ban, as well as the impact on other fuels."