Commodities
US Diesel Export Ban Widens Crude Price Gap
A possible US ban on diesel exports is widening the gap between US crude oil futures and the global Brent benchmark.
This has led to a discount of as much as $12.02 per barrel for domestic crude futures compared to Brent futures, its largest since May 6.
The move could bring some relief to high diesel prices in the US, which have hit a record $6.528 per gallon and sparked a political uproar.
However, analysts warn that this may be a double-edged sword, as it could also lead to higher gasoline prices in the future, while potentially causing diesel prices to rise again in the long term.
US refiners could cut their crude runs by up to 12% if diesel exports are banned, with key storage hubs likely to fill up within a month.