- Morgan Stanley analysts including Martijn Rats warned that banning US diesel exports would lead to higher gasoline prices.
- The mechanism: an export ban would fill domestic storage tanks within weeks, prompting refiners to cut runs and reduce gasoline output, pushing prices higher.
- The note, dated Sept. 23, flags 'significant implications' from such a restriction.
Quotes
“A diesel export ban could have the counterintuitive effect of an increase in gasoline prices if US refiners cut runs”