Trump's Diesel Ban Threat Fuels Global Inflation Fears

A US ban on diesel exports could unleash a global inflation shock, warns Nigel Green, CEO of deVere Group. The move would choke off a vital fuel source and send shockwaves through energy markets.

Diesel prices in the US are already at $6.50 a gallon, just below the record set on 22 September. Global markets are missing out on an estimated 1.3 million barrels of diesel per day due to supply disruptions from Russia and the Gulf.

A ban would likely send Europe's diesel premium soaring above $95 a barrel, a record in data going back to 2011. This could exacerbate the Eurozone's inflation woes, which hit 3.3% in August, its highest level in three years.

Nigel Green notes that President Trump has admitted a ban could push gasoline prices higher, potentially hurting farmers, truckers, and swing-state voters just before the midterms.