Trump's Diesel Export Ban Plan Risks Global Fuel Market Meltdown
President Donald Trump has suggested banning diesel exports to lower U.S. prices, but analysts warn this would have devastating consequences for global fuel markets.
The average U.S. diesel price of $6.52 per gallon as of Sept. 23 is an all-time high, and the idea of a ban has been gaining traction among farm-state Republicans ahead of the midterm elections.
However, analysts say that banning exports would lead to a domestic glut, forcing refineries to reduce operations and pushing oil prices even higher. This would further exacerbate diesel costs globally, particularly in regions like Europe where fuel supplies are already tight.
Patrick De Haan, head of petroleum analysis at GasBuddy, notes that the U.S. is not short of diesel, but the world is. 'A potential export ban treats the global price problem as if it was a U.S.-only problem,' he said.