Trump proposal to ban US diesel exports faces warning from analysts
Analysts and Goldman Sachs warn that President Trump's proposed ban on U.S. diesel exports could backfire, raising gasoline prices and disrupting global energy markets.
U.S. President Donald Trump has voiced support for banning American diesel exports to combat record-high domestic fuel prices driven by a global supply shortage. However, market analysts and financial institutions warn the proposed policy could backfire.
According to Goldman Sachs Group Inc., an export restriction would rapidly fill domestic storage and temporarily depress diesel prices, but it would ultimately reduce gasoline production and push up prices at the pump. Analysts also cautioned that removing American supplies from international markets would deepen global energy shortages and heighten economic disruptions.
Sources: Bloomberg, Daily Sabah