Morgan Stanley: Diesel Export Ban Would Push U.S. Gas Prices Higher
5 Articles
5 Articles
Morgan Stanley: Diesel Export Ban Would Push U.S. Gas Prices Higher
U.S. gasoline prices will spike further if the Trump Administration bans diesel exports, Morgan Stanley analysts say, as restrictions remain a debate amid record-high diesel prices in America. “A diesel export ban could have the counterintuitive effect of an increase in gasoline prices if US refiners cut runs,” analysts at Morgan Stanley wrote in a note carried by Bloomberg. A ban on diesel exports would force U.S. refiners to cut refinery util…
Morgan Stanley and Goldman Sachs warn that a U.S. ban on diesel exports could have the opposite effect: reducing refinery production and fueling gasoline. The bill, backed by Donald Trump, splits its administration while fuel reaches record prices in the midst of Iran’s war.
As discussions continue in the US regarding restrictions on diesel exports, Morgan Stanley has issued a notable warning. According to the bank, a potential export ban, instead of easing the diesel market, could suppress refinery production, leading to a significant drop in gasoline supply. This, in turn, risks driving gasoline prices higher rather than lower.
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