Hassett says US refineries are turning back on
The White House economic adviser says relief on diesel supply is coming soon, as refining capacity restarts
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Kevin Hassett, director of the White House National Economic Council, says refineries are turning back on and that relief is coming soon, Fox Business reports.
Hassett has spoken for weeks about tight diesel supply, calling it a major concern because the fuel is refined mostly in regions disrupted by conflict, according to Webull. On October 2 he described a possible European reserve release as a potential fix with a "massive impact." The White House says it has since negotiated with Europe to release 100 million barrels of refined diesel from strategic reserves over four months, and that the supply squeeze stems from the Russia-Ukraine war and a lack of refining capacity, including capacity lost when some US states shut refineries under what it calls 'Green Energy' policies.
G7 leaders have said they agreed on "decisive, coordinated measures to stabilize immediate energy supplies," including coordinating refinery maintenance schedules so capacity does not go offline all at once, Fox Business reports. On October 5, President Trump signed an executive order allowing off-road "dyed" diesel to be used on highways and deferring the federal excise tax, both aimed at lowering diesel costs, according to a White House fact sheet.
Diesel prices have been climbing. Time News reported a national average of $6.30 a gallon as of October 7. Goldman Sachs forecasts that diesel and jet-fuel crack spreads will average more than $40 a barrel in 2027, over twice their usual level, and does not expect additional G7 crude supply to ease diesel prices meaningfully over the long term, CNBC reports.
Hassett's comment that refineries are turning back on speaks directly to that tension. If domestic refining capacity is genuinely restoring output rather than waiting on a European drawdown, it weakens the case that diesel tightness needs an external fix, and points toward easing refined product cracks and less upward pressure on crude oil demand from refiners scrambling to cover shortfalls.