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Goldman Warns Diesel Export Ban Would Send Gasoline Prices Higher
Crude Oil Prices Today | OilPrice.com • • general
Key Points:
- Goldman Sachs analysts predict that a U.S. ban on diesel fuel exports would initially lower diesel prices by about $0.25 per gallon weekly until storage capacity is full.
- Once diesel storage fills, gasoline prices could rise by approximately $0.30 per gallon per week due to the interconnected production of diesel, gasoline, and jet fuel.
- The diesel export ban would also increase European fuel prices by an estimated $3 per barrel, or roughly 2% of current diesel prices, with emergency inventory releases potentially mitigating half of this impact.
- After the ban is lifted, U.S. diesel prices are expected to realign with global prices, causing domestic diesel prices to rise and international prices to fall.
- Analysts question the overall benefit of a diesel export ban given its short-term price relief, subsequent gasoline price increases, and eventual diesel price rebound.
