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. According to them, once available storage space fills with gasoline, gasoline prices could add $0.30 per gallon per week.

Set OilPrice.com as a preferred source in Google .

Meanwhile, the diesel ban would also push up fuel prices in Europe as well, as the continent is the biggest buyer of U.S. energy commodities. Goldman estimates the price effect at $3 per barrel of diesel, equal to about 2% of current prices. An emergency inventory release could cushion the blow by about 50% of that price rise, according to the bank.

“Once a diesel ban is lifted, US diesel prices would likely reconnect with prices elsewhere, including Europe, putting upward pressure on US diesel prices and downward pressure on prices abroad,” the analysts also said.

This raises the question of whether there is even a point to a diesel export ban, if its immediate effect would be short-lived, would then turn adverse on gasoline prices, and eventually, once the ban is lifted, diesel prices would rebound.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com

 

  • Related Posts

    Energy Groups Urge Trump to Reject Fuel Export Restrictions

    In a statement sent to Rigzone recently, American Fuel & Petrochemical Manufacturers (AFPM) announced that more than 30 U.S. business, energy, and manufacturing groups from around the country have issued…

    TotalEnergies Targets 3% Annual Oil and Gas Growth Through 2030

    TotalEnergies expects its oil and gas production to grow by more than 3% every year until 2030 due to start-ups of new low-cost projects currently under development, the French supermajor…

    Have You Seen?

    The knock-on industry impacts of high diesel prices

    • September 28, 2026
    The knock-on industry impacts of high diesel prices

    Energy Groups Urge Trump to Reject Fuel Export Restrictions

    • September 28, 2026
    Energy Groups Urge Trump to Reject Fuel Export Restrictions

    Middle East Oil Exports Rebound to 12.8 Million Bpd

    • September 28, 2026
    Middle East Oil Exports Rebound to 12.8 Million Bpd

    Goldman Warns Diesel Export Ban Would Send Gasoline Prices Higher

    • September 28, 2026
    Goldman Warns Diesel Export Ban Would Send Gasoline Prices Higher

    Germany’s Gas Storage Sits at 57%, but VNG Says Winter Supply Is Covered

    • September 28, 2026
    Germany’s Gas Storage Sits at 57%, but VNG Says Winter Supply Is Covered

    TotalEnergies Targets 3% Annual Oil and Gas Growth Through 2030

    • September 28, 2026
    TotalEnergies Targets 3% Annual Oil and Gas Growth Through 2030

    JA Expands C&I BESS Offering with DC-Coupled Hybrid Battery and Latest-Gen AC-Coupled Solution

    • September 28, 2026
    JA Expands C&I BESS Offering with DC-Coupled Hybrid Battery and Latest-Gen AC-Coupled Solution

    Ellenbarrie commissions ASU for India steel producer

    • September 28, 2026
    Ellenbarrie commissions ASU for India steel producer

    CleanMax Raises INR 2,500 Crore Through Green NCDs at 8.25%–8.76% Fixed Coupons

    • September 28, 2026
    CleanMax Raises INR 2,500 Crore Through Green NCDs at 8.25%–8.76% Fixed Coupons

    SWELECT Rolls Out 5 kW to 50 kW SWEES EN+ Hybrid Inverter Range for C&I Customers

    • September 28, 2026
    SWELECT Rolls Out 5 kW to 50 kW SWEES EN+ Hybrid Inverter Range for C&I Customers