Trump's Diesel Export Ban Could Spark Global Fuel Price Shock

US diesel exports may be restricted by President Trump in an effort to curb rising fuel prices ahead of the midterm elections, but this move could have unintended consequences for global markets.

The US is the world's largest diesel exporter and any reduction in exports could lead to supply shortages and higher prices elsewhere. According to the US Energy Information Administration, US diesel inventories have declined sharply, standing at 107.9 million barrels as of September 11, the lowest level in more than four decades.

Energy analysts warn that limiting US exports could affect global diesel availability and push prices higher. Patrick De Haan, head of petroleum analysis at GasBuddy, said 'diesel trades on a world market, just like corn… force a lower price and they'll make less diesel. Less supply means higher prices, not lower.'

Wood Mackenzie also noted that keeping more diesel within the US could eventually fill storage facilities and force refiners to reduce production, affecting countries that rely heavily on American fuel supplies.