US’s Wright Plays Down Fuel Export Curbs as Way to Lower Prices

(Bloomberg) -- The Trump administration is focused on boosting crude and fuel supplies rather than constraining US oil exports, Energy Secretary Chris Wright said Sunday.

"We consider all options of how we can move prices that are favorable for American consumers, but right now we're leaning in on maximum production — energy addition," Wright said on CBS's Face the Nation. "The way to solve a supply shortage is to grow supply."

Wright's comments come amid record-high US retail diesel prices stoked by wars in Iran and Russia that have disrupted oil flows and curtailed refining. Diesel serves as a workhorse fuel — powering farm machines, the movement of freight and the construction of buildings — so its price surges can ripple through the global economy.

A gallon of diesel cost $5.90 on average in the US on Saturday, according to auto club AAA.

The surge has renewed speculation the Trump administration might look to curtail exports of US crude and refined products. President Donald Trump and top cabinet officials have repeatedly insisted a potential export ban is off the table, with Interior Secretary Doug Burgum saying in May it's a bad idea "economically, geopolitically and for affordability."

On Sunday, Wright stopped short of explicitly ruling out an export ban, before stressing the focus on supply-side solutions.

Industry leaders have warned the administration that cutting off American oil from world markets would backfire by ultimately suppressing investment in domestic production.

"You want to keep as much energy flowing as possible," Wright told CBS, while conceding the diesel dynamic is "challenging," complicated by drone strike damage to Russian refineries and Moscow's decision to ban exports of the fuel.

Trump, Burgum and Wright pressed oil industry executives on how they could boost refining capacity in a White House meeting last week, a recognition that US fuel makers are already running at full tilt trying to satisfy demand. Some fuel refiners urged the administration to relax biofuel blending requirements they say are driving up pump prices.