US backs down from fuel export ban threat as G7 agrees to release 100mn barrels

{"text":[[{"start":14.25,"text":"The US has backed down on a threat to stop exporting fuel to the world as part of a deal in which European countries agreed to release more diesel from their strategic reserves on Friday."}],[{"start":24.35,"text":"The decision comes as US President Donald Trump attempts to douse a surge in diesel prices for American industry and farmers ahead of November’s midterm elections, which will determine control of Congress."}],[{"start":37.8,"text":"G7 leaders said after a meeting on Friday that they would release 100mn barrels of crude and diesel, co-ordinated by the International Energy Agency, “in light of ongoing market pressures”."}],[{"start":49.55,"text":"In a joint statement, they did not give full details of the plan but said the release would be carried out over a four-month period, beginning “immediately”, and including a “substantial” release of diesel reserves within the first 20 days. "}],[{"start":62.349999999999994,"text":"The intervention will take into account “commitments that have already been fulfilled” under a pre-existing 400mn-barrel pledge made in March, of which 325mn barrels have already been released, according to the IEA. "}],[{"start":76.69999999999999,"text":"Three people familiar with the details of the release said 40mn barrels would come from the US Strategic Petroleum Reserve, while Europe would contribute about 50mn barrels of diesel, with the remainder coming from Asia."}],[{"start":88.6,"text":"The agreement comes after Trump had faced intense pressure from Republican legislators representing America’s agricultural heartlands to impose an export ban to ease the strain on farmers ahead of next month’s elections. "}],[{"start":101.25,"text":"European negotiators — and the US oil industry — had raced to avert a suspension, which would have sent global fuel prices soaring. "}],[{"start":109.85,"text":"“We’re not going to be doing the export ban,” Trump told reporters on Friday, describing Europe’s commitment to release diesel stocks as “a great thing”. "}],[{"start":118,"text":"“Europe has a lot of diesel and they’re going to be making a major world contribution and so are we,” he said. “We’re going to have a lot of oil.” "}],[{"start":125.55,"text":"Two diplomats familiar with the discussions said the White House had asked Europe to unlock at least 100mn barrels and threatened to go ahead with the ban on US diesel exports if European countries failed to meet Washington’s demand."}],[{"start":null,"text":"

"}],[{"start":138.95,"text":"The joint statement included a commitment from the signatories — including the US — “to refrain from export restrictions on energy and energy products between G7 countries and call on all producers to refrain from imposing bans that could exacerbate market tensions”."}],[{"start":155.1,"text":"Asked if Washington had ruled out a diesel export ban as part of the G7 release, the White House pointed to the pledge in the joint statement. "}],[{"start":164.1,"text":"French President Emmanuel Macron said G7 members had agreed “not to take any measure to restrict the exchange of oil and energy products between partner countries”."}],[{"start":175.15,"text":"European diesel futures extended declines after the announcement, with the benchmark down 8 per cent to $1,337.75 a tonne, the lowest level since the start of September. Wholesale diesel for sale in New York harbour fell almost 2 per cent to $4.56 a gallon."}],[{"start":194.95000000000002,"text":"The G7 leaders said they would “convene in the context of the IEA in the coming days to discuss the possibility of additional diesel releases as necessary”."}],[{"start":204.70000000000002,"text":"The release is a big win for the US oil industry, which had lobbied hard against an export ban and encouraged the administration to lean on allies to dump stocks as an alternative."}],[{"start":215.95000000000002,"text":"“We welcome the administration’s efforts to secure a co-ordinated G7 release of 100mn barrels of crude and refined products, along with a commitment not to impose export restrictions between parties,” said Bethany Williams, spokesperson for the American Petroleum Institute, an industry lobby group. "}],[{"start":233.70000000000002,"text":"Macron said on Friday that the release would “send a clear signal to markets”."}],[{"start":238.8,"text":"France had earlier proposed a plan in which Europe would release 50mn barrels of diesel and for IEA countries to unlock a further 50mn barrels of crude, according to several diplomats familiar with the matter."}],[{"start":251.35000000000002,"text":"In March, Europe committed to release 73mn barrels of refined fuels as part of a 400mn-barrel strategic stock draw co-ordinated by the IEA in response to the conflict in the Middle East. "}],[{"start":265.1,"text":"The US has largely completed its share of that programme, but some European countries have not yet met their obligations, according to Fatih Birol, head of the IEA. "}],[{"start":274.90000000000003,"text":"Diesel prices have been trading above $200 a barrel in the US, Europe and Asia for several weeks because of several shocks to the world’s refineries, including from the Iran war, Russia’s conflict with Ukraine and China’s decision to limit fuel exports."}],[{"start":290.95000000000005,"text":"Additional reporting by Sarah White in Paris and James Politi in Washington"}],[{"start":305.1,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1790993783_6523.mp3"}