Sec. Wright diesel release 100 million barrels
Sec. Wright says the US and European allies have officially agreed to release 100 million barrels of diesel. His words: "This lowers diesel prices not just in the United States, but it lowers them in Europe and around the world!" Europe sits on huge diesel stores because it doesn't refine enough to supply its own economy, so it wants American diesel to keep flowing. When Russian exports are shut off and China stops delivering, that's what the reserves are for. Gulf flows got cut but are coming back, and that takes time. Releasing stored diesel is the immediate move. "It will drive diesel prices down as those releases come, it'll drive diesel down through the winter in the United States and around the world." More refining capacity is expected online by the time this plays out. "We'll have more refining capacity online. I suspect we'll continue to see diesel decline as we go into next spring as well." Diesel prices are projected to keep dropping into next spring. Thank 47 for actually tackling the diesel impacts. Our allies stepped up because the US president is strong.
Transcript (en)
It's a big deal. It's a big deal. Europe has very large diesel stores. They don't refine enough diesel to supply their own economy, so naturally they store a lot of diesel. They're very keen to see American diesel continue to flow to Europe. They've got a lot of diesel in stores. Why not release some of that? This is what you store diesel for when all the Russian exports of diesel are shut down, when the Chinese have said we're not going to deliver any more diesel. And you still have a reduction of diesel flows coming out of the Gulf, but we're restoring those. But that takes time. This is just common sense. This lowers diesel prices, not just in the United States, but it lowers them in Europe and around the world. But it will drive diesel prices down as those releases come. It'll drive diesel down through the winter in the United States and around the world. And by then we'll be in another place. We'll have more refining capacity online. I suspect we'll continue to see diesel decline as we go into next spring as well.
