Speaking to a forum hosted by the Economist in New York, Secretary of Energy Chris Wright explained that banning the export of diesel fuel will do nothing to impact the price of diesel fuel and would, eventually, raise the price.
The reasoning is simple.
“The blunt tool of banning diesel exports definitely doesn’t work,” Wright said. “If you can’t export the diesel that comes out of our refineries, you run out of places to store it, and you have to reduce US refining, which would put upward pressure on gasoline prices and jet fuel prices,” Wright said.
The part that Wright didn’t say is the component of price that is entirely detached from supply/demand. The pump price is determined by market speculators, commodity traders and multinational financial interests. That “market price” has nothing to do with the amount of diesel in the inventory.
Restricting exports, a process that ends with restricting production, only gives the speculators and traders a justification to project higher prices. The USA ends up swimming in diesel fuel as the pump price climbs to $15/gal.
If you want to end the disconnection of supply to price, you have to do what Russia does. Sell outside the “market price” at the production cost + profit margin.
In the “west” it’s a rigged game; but be careful. The DSA crowd wants to change the game’s outcome by changing the referees who can then ban/control the players.
Trump’s MAGAnomic approach changes the rulebook of the game completely and is more in line with Putin (BRICS).
George Carlin previously explained it.
Sorry, no. Prices will go down before the Midterms. It will happen.
After the 90 days, it will go back up.
And what EXACTLY will cause prices to go down? Please elaborate.
Create more storage in the USA. Create more detachment from the game the speculators play. China did it and are able to weather the storm better than us.
Since we don’t have a supply problem….at all…..how is your idea going to help prices??
We need increased REFINING ABILITY worse than anything. Thank the earth worshipping Climate Change Cult for us not having it.
Even if you had the billions $$$ that would take, you don’t have the time BEFORE the elections. The price is being manipulated by people who want the price to hurt. When has diesel EVER been $2 more than gasoline? There’s no historic precedent. When it’s no longer useful, the high prices will come down. Right after the elections. Especially if Democrats win, so they can erroneously take the credit.
George Carlin was a wise man ahead of the times.
Lets not forget that the same commodities mentality exists for our food supply as well.
Exactly.
The US does NOT have a supply problem with diesel. That’s why there is so much for export.
Whoever in the Trump Administration that floated this stupid idea needs to be fired.
Love the Carlin skit. Seen it several times and it only gets more prescient with time. Language is rough but can’t argue with his interpretation of events.
We were told the fuel storage tanks ARE empty. Let’s build up the storage, the price will drop and demand will increase within the USA. If we get full storage then allow staged exports.
Big club or Big tent.
So accurate and George spelled that out about 30 years ago, maybe longer.
🎯
sDee, you’re welcome. 😊
So how do you get the prices down? It better happen soon as this could drag our chances down in the mid-terms.
So close all commodity markets. Make it illegal.
lol, are you wanting to collapse the commodity markets or just being facetious?
Sounds drastic. Then you go with government price controls?
Instead, we should limit commodity trading to those that actually produce or use the product. Kick out the speculators and the City of London.
Unless there is full collusion among the traders in the market, it seems like a market-based price would always be the lowest. If the game is that rigged, to whom is all the excess money going and why hasn’t anybody reported on the massive scam being perpetrated on the citizens? And how is Maganomics going to change the system? More background and explanation please.
I understand that folks what to believe what they want to believe because they can’t accept reality. But, you can’t blame that your tires are flat on your vehicle because someone stuck a knife in them, when you’re neighbor’s surveillance system clearly shows you puncturing your own tires.
Sorry, if I traded markets based on opinions, instead of making $$$ everyday, I’d be liquidating my assets and end up living on the streets.
Nope. The City of London speculators and insurers (Lloyds) control the price. The actual true price of oil is what Russia charges to India – based on production and shipping costs. As Sundance points out, global commodity trading is why orange juice costs the same in Minneapolis as it does in Florida. Collusion? You bet.
Insert Brussels, City of London, Davos and the Rules Based Order.
Just a piss hole in the snow.
Ah yes, the classic George Carlin explanation of the US government and the “free” market system.
Carlin was aware of the corporatism or the rise of corporate fascism well before most.
Old enough to remember when lots of “conservative GOP” bloggers would call you out if you rightly placed blame of events on Wall Street or mega corporations.