Why Diesel Prices Are Soaring and What It Means for Europe
Analysts say a ban could remove 1.5 million barrels a day from trade and push fuel prices higher across Europe, Latin America and the United States.
- On Monday, U.S. Energy Secretary Chris Wright clarified the administration is "examining ways to increase domestic diesel availability" rather than considering an export ban.
- The United States supplies about 20% of diesel traded daily by sea, but surging global demand amid conflicts in West Asia and Russia has pushed retail prices over $6 per gallon.
- Goldman Sachs modeled a hypothetical 90-day restriction, warning that once storage fills, each week could raise gasoline prices by about $0.30 per gallon as refiners cut output.
- The American Petroleum Institute cautioned that blocking exports would "break havoc at home and abroad," noting that roughly 54% of refining capacity is concentrated along the Gulf Coast.
- India, currently a major fuel exporter, could benefit from higher prices if U.S. supplies vanish, though analyst Natalia Katona warned India's peak demand season starting in October will limit export capacity.
14 Articles
14 Articles
The US is considering export restrictions on diesel. Europe is likely to be most affected by this. What does this mean for the prices at German petrol stations – and could diesel become scarce?
Why diesel prices are soaring and what it means for Europe
Trucks, farms and industry are powered with diesel. Now prices are soaring due to refinery disruptions, supply shortages and geopolitical tensions. A potential US export ban could make Europe's diesel crunch even worse.
Goldman expects initial diesel price decline under US export curbs
Goldman Sachs said on Saturday that a US diesel export ban would initially put moderate downward pressure on diesel prices, and that restrictions on exports, including quotas, were a plausible outcome.
What a US diesel export ban could mean for energy markets globally, and India
A proposed US curb on diesel exports has rattled an already tight global fuel market, raising fears of higher prices and deeper supply shortages. India, as a net diesel exporter, could benefit from stronger demand and better export margins.
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KalingaTVUS diesel export curbs could lower diesel prices initially, lift gasoline prices later: Report
A potential US restriction on diesel exports could initially lower domestic diesel prices but eventually push up gasoline prices as rising inventories force refiners to cut output, Goldman Sachs said, while warning that the effects could extend to diesel markets in Europe and other regions.
Brazil buys 10 million litres of diesel from the U.S. country per day, representing 8 to 10% of total national consumption
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