Oil prices rose above $100 a barrel on the US-Iran geopolitical deadlock. Iran’s president said Wednesday he was open to talks to end the war, but warned that Tehran wouldn’t surrender its nuclear program — a major sticking point in the negotiations — or “bow” to the US. Yet, more oil and gas is reported to be moving through the Strait of Hormuz. Qatar has ramped up LNG shipments to the highest levels in over two months and Saudi crude exports are on the rise.
Meanwhile, US Energy Secretary Chris Wright poured cold water on reports that the White House is planning a full ban on US diesel exports to bring down record prices. Few think it’s a good idea: Industry has pushed back on the proposal, Goldman Sachs said it would shrink gasoline supplies and push up prices at the pump, while JP Morgan pointed out that even if the logistical challenge of redirecting exports from the Gulf Coast to the East Coast was overcome, a ban would hurt American refineries in the long term.
