What will be the effect of ban on US diesel exports on global fuel prices?

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---Photo courtesy of International Media
—Photo courtesy of International Media

The price of diesel in the US increased from $5.61 to $6.50 per gallon in a month, while the national reserves have reached the lowest level in 4 decades.

According to Arab media, US President Donald Trump has supported limiting diesel exports, while some Republican members have demanded a temporary ban, but the US government has not yet made a final decision.

An analytical article published in the Arab media said that stopping exports could affect the production of refineries instead of immediately reducing prices in the US.

In the report, experts say that refineries may reduce production if reserves fill up, which could further reduce overall supply.

Likewise, Latin America and Europe, which rely on US diesel, may have to pay more for alternative supplies, which could further push up global fuel prices.

According to several analyzes included in the Arab media report, in the case of a complete ban, US diesel production may decrease by 750,000 barrels per day, while the US may also need to import gasoline.



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