US Diesel Export Ban Could Widen Crude Price Gap

The US is considering a ban on diesel exports, which could widen the gap between US crude oil futures and the global Brent benchmark.

This move would likely reduce US refiners' crude runs by as much as 12% if diesel output gets stuck at home.

An analyst note from Wood Mackenzie states that a diesel export ban would redirect an oversupply of diesel and gasoil into storage, effectively filling Gulf Coast inventories to maximum capacity in just over a month.

This could lead to higher gasoline prices in the US and potentially rising diesel prices again in the long term.