Over the last three months, my readers have asked me if the US would bring in a crude or products ban. I stayed on the fence, giving it a 55% mental weighting three months ago. Now we are being whipped globally by skyrocketing diesel prices, and the question has moved into the White House.
US Diesel Export Ban Could Raise Gasoline Prices Despite G7 Release
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Key Points:
- The G7 will release up to 100 mb of oil stocks over four months, with diesel frontloaded, as Washington threatens a US diesel export ban that Wood Mackenzie says would raise gasoline prices at home.
- Russia, China and India have all lost product supply, and Houthi strikes on Aramco's Abqaiq and Riyadh facilities show this is now a products and refinery crisis, not a crude one.
- The diesel release should cap European pump prices for about four months, but tanker rates at $1.3 million a day mean inflation still gets through.