• Sign up for the Daily Digest E-mail
  • Facebook
  • Twitter
  • LinkedIn

BOE Report

Sign up
  • Home
  • Headlines
    • Latest Headlines
    • Featured Companies
    • Columns
    • Discussions
  • Well Activity
    • Well Licences
    • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
  • Industry Data
    • Canada Oil Market Data
    • Canada NG Market Data
    • USA Market Data
    • Data Downloads
  • Jobs

U.S. refiners to urge White House not to ban fuel exports -sources

June 22, 202210:17 AM Reuters0 Comments

The Philadelphia Energy Solutions oil refinery owned by The Carlyle Group is seen at sunset in front of the Philadelphia skyline March 24, 2014

U.S. refiners will try to convince the Biden administration not to ban exports of U.S. fuel to combat record gas prices during a meeting scheduled for Thursday, according to sources familiar with the plans.

The White House has called an emergency meeting with top U.S. refiners to discuss ways to bring down record gas prices that have driven inflation to 40-year highs. The meeting follows weeks of mudslinging between U.S. President Joe Biden and oil companies over who is to blame for the price spikes, which are affecting consumers worldwide.

In the weeks leading up to the meeting, White House officials signaled to refiners that they were considering either a partial or full ban on fuel exports to help lower the domestic price of gas and diesel.

The United States is the world’s biggest exporter of refined products, lately shipping a near-record of 6 million barrels per day of products including gasoline and diesel, according to federal data. Restricting exports could temporarily flood the U.S. market, lowering prices, but refiners could respond by reducing output.

Refining officials also are preparing to make the case that an export ban would anger allies and lead to refining production cuts as companies lose access to global markets that have become crucial to revenues.

“Not only will limitations or outright bans of petroleum products have the exact opposite effect than intended – raising fuel prices instead of lowering them and placing additional refining capacity at risk – it would hurt our allies in Latin America and Europe,” a spokesperson for the American Fuel and Petrochemical Manufacturers said.

Mexico, Canada and Japan are among the top buyers of U.S. refined products, and Europe has increased purchases in recent weeks to make up for lost Russian supply following Moscow’s decision to invade Ukraine in February.

The refiners will also suggest their favorite short-term options to lower gas prices, such as waiving summertime fuel specifications designed to reduce smog, relaxing shipping rules requiring union labor and approving new renewable fuel technology, the sources said.

Biden is already calling on Congress on Wednesday to pass a three-month suspension of federal gasoline and diesel taxes.

The White House did not respond to requests for comment.

In 2015, The U.S. lifted a 40-year ban on crude oil exports that was put in place to help keep the country less dependent on the Middle East. In the last two years, the country has become a net exporter of crude oil and refined products, making it one of the most important players in global energy markets.

“If refiners aren’t allowed to export, they’re just going to slow down production and cut the refinery utilization rate,” according to Bob Yawger, director of energy futures at Mizuho.

Yawger said excess products would likely be sent into inventories, which are at multi-year lows.

“Refiners would lose money on it and refiners are not a charity,” he added.

Follow the BOE Report
  • Facebook
  • Twitter
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • Canada’s weekly rig count up 15 to 175
  • U.S. drillers add oil and gas rigs for a record 23 months
  • U.S. natgas futures hold near 11-week low as LNG exports decline
  • No plans for extraordinary EU summit on gas prices in July
  • Oil prices rise on tight supply, inventory uncertainty

Return to Home
Alberta Gas
CAD/GJ
Market Data by TradingView

    Report Error





    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    • Editorial Policy
    Resources
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • CamTrader
    • Rigger Talk
    Data Partner
    • Foxterra
    BOE Network
    © 2022 Grobes Media Inc.