What happens if the US bans diesel exports — and why analysts say global fuel prices could surge
LONDON, Sept 26 — With diesel prices hitting records ahead of the US midterm elections, President Donald Trum...
As diesel prices peak ahead of the US midterm elections, President Donald Trump has indicated support for a ban on diesel exports. However, analysts warn the restriction could lead to higher global fuel prices. Reuters explores the potential impacts and controversies surrounding a potential ban:
Trump's administration remains divided over the issue. Some Republican figures, including Trump, have called for limiting diesel shipments. "I’ve said let’s not send out the diesel," Trump stated. If the ban is enforced, short-term US prices may decrease due to increased domestic supply. However, Morgan Stanley analysts suggest US refineries would likely cut output, leading to higher costs for petrol and jet fuel.
Meanwhile, a diesel export ban could cause global fuel prices to soar. Consulting firm DNB Carnegie warns the move would boost international refining margins and pump prices worldwide. Europe, heavily reliant on US diesel imports, faces potential shortages if Washington restricts shipments. Without alternative sources, European diesel prices could exceed €3.90 (RM17.94) per litre.
The disruption to global diesel supply would create a new energy shock, particularly for regions already experiencing fuel price volatility.
Written by urgent.news from Malay Mail's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
