Goldman Warns Diesel Export Ban Would Send Gasoline Prices Higher

If the United States institutes a ban on diesel fuel exports, Goldman Sachs analysts estimate it would initially push prices lower. The effect, however, would only continue until storage space fills up, the bank warned. Amid reports on the possibility that Washington may suspend diesel fuel exports for a period of 90 days, the investment bank's analysts calculated that the move, once in effect, could reduce diesel fuel prices by about $0.25 per gallon every week - until diesel storage capacity fills. Once that happens, prices at the pump will start climbing higher again, but this time for gasoline, Reuters reported, citing the bank. "The longer a diesel export ban lasts, the more disruptive it would likely be by putting upward pressure on gasoline prices because diesel, gasoline, and jet fuel are largely produced together," Goldman Sachs' commodity analysts said in a note.