Crude Falls as Diesel Surges on US Export Ban Fears

Oil prices are experiencing mixed signals as crude falls while diesel surges. Brent crude futures rose $1.15, or 1.16%, to $100.40 a barrel by 11:43 GMT on Wednesday, but remain under pressure. Despite the gain, Brent had fallen to $97.36 a barrel in the previous session, its lowest level since September 8.

The biggest move in the energy market was seen in diesel, with Europe's low-sulphur gasoil premium over Brent crude futures climbing to a record of about $95 a barrel. This surge came after US President Donald Trump backed the idea of banning US diesel exports to bring down diesel prices, which have reached record highs due to a global shortage.

Analysts and market watchers have warned that restricting diesel exports may not solve the price problem and could instead create more supply problems and economic disruption around the world. Saudi Arabia's East-West pipeline resumed operations on Tuesday after being shut since September 11, which has disrupted Saudi crude exports. Iraq is also increasing its oil exports, with over 3 million barrels per day currently being exported.