Europe diesel release wont have much impact on US prices, experts say: At most a few pennies

Europe on Friday caved to President Trump’s demand that it release barrels of diesel oil from reserves – but experts are warning it could have little to no effect on US prices at the pump.The release of up to 100 million barrels of diesel oil within the next few months could help lower the price of oil by a few dollars, since it’s a global market, experts said.It could also help reduce European diesel prices, which are near an equivalent of $8 a gallon.But the US produces the vast majority of the diesel it consumes each year, meaning the impact would be “at most a few pennies of change,” Joe Adamski, managing director of ProcureAbility, a supply chain consultancy, told The Post. “The government is trying to solve a supply crunch with temporary measures and dipping into reserves.

That’s a temporary fix at best,” Nic Puckrin, cross-asset analyst and founder of Coin Bureau, told The Post.Trump has previously proposed a ban on diesel exports, which would be disastrous for European nations, but the G7 agreement to release reserves took this idea off the table, according to a statement Friday.The commander-in-chief is also reportedly considering an executive order next week to lower US diesel prices.Experts said these changes could immediately lower US gasoline prices by 30 to 40 cents – but the effects would be temporary and refiners would eventually move production elsewhere.A more permanent solution would be an end to the war in Iran, which has effectively blockaded the Strait of Hormuz and disrupted global energy supplies for seven months.Trump said Thursday night that Iran “is ready to fold up,” adding that he believes the US will win the war “right after the election.” But he also said US strikes against Iran might resume right after the November midterms.“Until we get back to a point of getting the Strait of Hormuz reopened, getting the Red Sea reopened and stabilized, we’re going to continue to see disruptions,” Adamski said.Fren...