US Energy Secretary Wright on Diesel Prices, Iran and Venezuela Output

Summary

US Energy Secretary Chris Wright discussed fuel prices, refining capacity, Iran and Strait of Hormuz oil flows, Canada energy ties, and Venezuela investment. He expects US gasoline prices to decline in coming weeks but says diesel remains a bigger challenge because of lost Russian exports and Chinese refining curbs. He supports the Enbridge-Tallgrass crude deal and expects Venezuelan oil production to double by the end of next year.

• Wright says the surge in fuel prices is driven more by shortages of refining capacity than by crude oil itself.
• He expects gasoline prices to ease in coming weeks but calls diesel a bigger challenge.
• The administration plans to expand US refining capacity and has used Jones Act waivers for fuel supply.
• Ukrainian strikes on Russian refineries and China's refining curbs are pressuring global diesel prices.
• Strait of Hormuz oil and product flows are at their highest since the conflict started, at nearly 11 million barrels per day plus bypass pipelines.
• Wright expects significant new company investment in Venezuela and a doubling of Venezuelan oil production by end of next year.
• He supports Enbridge buying Tallgrass' crude business and says US-Canada energy trade is likely insulated from trade-war escalation.