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Market Chatter: White House Weighs Using Defense Production Act to Boost US Refining

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The White House is weighing the unprecedented use of the Defense Production Act to expand US oil refining capacity as the Iran conflict reveals vulnerabilities to global oil shocks and surging fuel prices, Reuters reported on Friday, citing two sources familiar with the plans.

The proposal was reportedly discussed at US President Donald Trump's recent meeting with almost a dozen refiners, where officials sought ways to deploy federal support to ramp up capacity. No final decisions were made, but discussions are expected to continue.

Refiners urged funding for upgrades and expansions at existing plants rather than costly new facilities. US refiners are already operating near full capacity, with utilization at 98%, according to the report.

Taylor Rogers, White House Spokeswoman, toldin an emailed response that America's refining capacity is essential to ensuring that the US has "continuous access to secure, affordable, and reliable energy."

"Expanding that capacity is a top priority for the President and his energy team, who are evaluating concrete options to increase our refining capacity through regulatory reform, faster permitting, and additional investment," Rogers said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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Commodities

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Commodities

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Commodities

US Natural Gas Update: Prices Rebound on Short Covering, Global Energy Strength

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