Trump supports limiting US diesel exports
US President Donald Trump backed the possibility of imposing a ban on diesel exports as the government considers alternatives to contain the sharp rise in fuel prices.
During a meeting with reporters on September 22, Trump stated that he has asked his team to study the possibility of keeping more diesel in the country. Treasury Secretary Scott Bessent confirmed that the administration is reviewing whether a total or partial ban would be feasible.
The proposal comes at a time of intense pressure on the fuel market. The national average price of diesel reached $6.5276 per gallon on September 22, the highest nominal price ever reported by AAA. It fell to $6.5217 the following day.
Trump proposes keeping more diesel in the United States
For his part, Trump indicated that the United States produces large quantities of diesel and suggested reducing shipments abroad as a way to increase domestic availability.
However, the administration has not yet announced a final decision. Bessent explained that the government is evaluating the capacity of the refining system and the differences between a partial restriction and a complete ban.
The discussion has also reached Congress, with several Republican lawmakers calling for temporary restrictions on diesel exports due to the impact that high prices are having on farmers, transporters, and other sectors that depend on this fuel.
Diesel prices reach record levels
Meanwhile, prices reflect a reduction in available supply both inside and outside the United States.
The U.S. Energy Information Administration notes that the price of diesel depends on the cost of crude oil, refining margins, distribution costs, taxes, and the availability of distillates.
Over the past few months, lower international production of distillate fuels and high oil prices have driven up the cost of diesel. According to the EIA, the price recorded in 2026 is the highest in nominal terms since it began publishing this series in 1994.
In addition, US distillate production between January and August averaged 5.1 million barrels per day, the highest level since 2019. Refineries operated at nearly 97% utilization during the week ending September 11.
Distilled spirit inventories remain under pressure
Total distillate fuel inventories reached approximately 107.9 million barrels during the week ending September 11. The EIA also reported that those inventories were about 13% below the five-year seasonal average.
The agency also predicts that reserves could fall below 100 million barrels in October, something that has not happened since 2003. It also expects them to remain below the range of the last five years during the first months of 2027.
This situation becomes even more critical as we head into autumn and winter. During this period, production typically decreases due to refinery maintenance, while agricultural demand and heating fuel consumption increase.
Diesel exports grow due to global prices
Weekly data from the EIA shows that the country exported approximately 1.61 million barrels per day of distillate fuels during the week ending September 11. In previous weeks in August, exports exceeded 1.9 million barrels per day.
The EIA itself explains that high international prices incentivize US exports. Since February 2026, net exports of distilled spirits have been at or above the highs recorded during the previous five years.
For this reason, those in favor of an export ban believe that withholding some of those volumes could increase domestic supply.
The proposal is generating differences within the government and the industry
Administration officials such as Energy Secretary Chris Wright and Interior Secretary Doug Burgum had expressed reservations about limiting exports before Trump's statements. The U.S. oil industry has also spoken out against it.
The American Petroleum Institute argues that Gulf Coast refineries produce more fuel than the region consumes, and that some of that surplus cannot be easily moved to other parts of the country due to geographical and infrastructure limitations.
According to the organization, a restriction could force certain refineries to reduce their activity if they lose access to international markets. API represents companies in the oil sector, so these statements reflect the industry's position on the proposal.
What could happen with an export ban?
In principle, limiting diesel exports would free up more product within the United States. This increased supply could put downward pressure on certain domestic prices in the short term.
However, experts warn that a ban could also raise international prices and disrupt supply chains. Some of these effects could then be passed back to the US market through higher global transportation, production, and trade costs.
Furthermore, the United States does not function as a single fuel market. Much of the refining capacity is concentrated on the Gulf Coast, while other regions rely on different distribution systems and even imports.
For this reason, having more diesel available within the United States does not guarantee that all of that volume can be immediately transferred to areas where there is greater demand.
The global diesel market remains under significant strain
Finally, the debate over the export ban is taking place within an international market with less availability of distillate fuels.
The EIA attributes some of the price pressure to reduced refining activity in Russia, China, and the Middle East. This decline in foreign production has increased demand for U.S. fuel and boosted exports.
The decision Washington makes will have effects that could extend far beyond American gas stations. While Trump supports keeping more diesel within the country, the government must determine whether a restriction can lower domestic prices without causing further disruptions at refineries and in the international market.
News of additional interest
Brent crude at $100 puts a brake on Chinese purchases
China is expected to keep its oil purchases under control through the end of 2026 if Brent crude remains near $100 per barrel. Goldman Sachs estimates that the country's imports will increase by around 600,000 barrels per day in the fourth quarter compared to the third. High crude prices and high transportation costs are leading Chinese refineries to tighten their belts.
The country had already drastically reduced its purchases in June due to high prices and lower supply from the Middle East. In August, imports recovered to 8.93 million barrels per day, 6.2% higher than in July. However, refineries are seeking closer suppliers and shorter routes to reduce costs while increasing their fuel exports.
Aramco is preparing a division dedicated exclusively to gas.
Saudi Aramco plans to reorganize its structure to separate its gas business from its production and refining operations, according to sources cited by Reuters. The new division would have its own president and would focus on both natural gas development in Saudi Arabia and the company's expansion into liquefied natural gas (LNG) production outside the country.
The oil company is also considering selling a minority stake in this future division on the stock market to raise capital without losing control. A key component would be Jafurah, a massive unconventional gas project slated to begin operations in 2025. Aramco expects its gas program will, at its peak, replace the equivalent of 500,000 barrels of oil per day used for electricity generation.
TotalEnergies accelerates Nigerian gas with Ima
TotalEnergies and Nigerian company AMNI have given the green light to the development of the Ima gas field off the coast of Nigeria. The project includes a platform connected to Nigeria LNG via a 22-kilometer pipeline. Production is expected to begin in 2028 and could reach 350 million cubic feet per day, equivalent to more than 60,000 barrels of oil per day.
The gas from Ima will cover about a third of the needs of the Train 7 project, which will increase Nigeria's LNG capacity from 22 to 30 million tons per year. The development will be powered from onshore and will operate without routine gas flaring. It will also feature continuous methane monitoring and strong participation from Nigerian companies and workers.
Estonia will have a giant 420 MWh battery
Taaleri Energia, along with a co-investor from its SolarWind III and KJK Fund III funds, will invest in Raudsepa, a 192 MW, 420 MWh battery storage system located in Estonia. Construction begins in September 2026, and the facility is scheduled to be fully operational by November 2027, at which point it will become the largest of its kind in the Nordic and Baltic region.
Raudsepa will store electricity to capitalize on price fluctuations and provide services that help stabilize the power grid. The project will utilize batteries from LG Energy Solutions and inverters from Power Electronics. The facility was developed by Evecon and Corsica Sole, while construction will be handled by the Estonian company Smartecon.