US Diesel Export Ban Would Exacerbate Global Fuel Crisis

US politicians are considering imposing a diesel export ban to address rising fuel prices. However, energy analysts warn that this move would only exacerbate the global fuel crisis.

Rising crude oil prices have not been the main cause of the surge in diesel prices. The US's war against Iran has led to the effective closure of the Strait of Hormuz, causing a shortage of medium gravity crude ideal for making diesel.

The Houthi rebels in Yemen have also attacked and damaged pipelines and refineries in western Saudi Arabia that supply diesel and aviation fuel to Europe and East Africa.

Ukraine's successful campaign against Russia's refineries has further reduced diesel exports. Russia used to export about 1 million barrels per day of diesel, but most of its refineries are now out of action.

A US ban on diesel exports would lead refiners to shift production towards other products like jet fuel and petrol, which would increase prices for these fuels.