ET Net News Agency reported on the 28th that U.S. diesel prices have recently surged to a record high of $6.50 per gallon. On Sunday (27th), U.S. President Trump responded to the ongoing rumors about a potential diesel export ban, stating, 'We are seriously considering banning U.S. diesel exports.'
According to Bloomberg, over the past week, key officials in the Trump administration, including National Economic Council Director Hassett, Treasury Secretary Bessent, and Trade Representative Grillo, have been analyzing the potential impacts of a short-term diesel export ban, reflecting the seriousness with which the Trump administration is treating this proposal.
Senior oil industry executives and trade groups are instead advocating for a temporary suspension of the federal diesel excise tax as an alternative measure, arguing it could alleviate price pressures without triggering the negative side effects of an export ban, although how to implement tax exemptions may spark controversy.
A Goldman Sachs research report suggests that if the ban is implemented, it would temporarily lower U.S. diesel prices by about $0.25 per gallon per week; however, if sustained for 9 to 10 weeks, it could instead push gasoline prices higher by $0.30 per gallon per week, while also driving up diesel prices in Europe.
Given this scenario, based on its analysis, Goldman Sachs reaffirmed its trade recommendation to hedge geopolitical risks by taking a long position in European gasoline for 2027 (e.g., EBOB Jun27). (rc)
According to Bloomberg, over the past week, key officials in the Trump administration, including National Economic Council Director Hassett, Treasury Secretary Bessent, and Trade Representative Grillo, have been analyzing the potential impacts of a short-term diesel export ban, reflecting the seriousness with which the Trump administration is treating this proposal.
Senior oil industry executives and trade groups are instead advocating for a temporary suspension of the federal diesel excise tax as an alternative measure, arguing it could alleviate price pressures without triggering the negative side effects of an export ban, although how to implement tax exemptions may spark controversy.
A Goldman Sachs research report suggests that if the ban is implemented, it would temporarily lower U.S. diesel prices by about $0.25 per gallon per week; however, if sustained for 9 to 10 weeks, it could instead push gasoline prices higher by $0.30 per gallon per week, while also driving up diesel prices in Europe.
Given this scenario, based on its analysis, Goldman Sachs reaffirmed its trade recommendation to hedge geopolitical risks by taking a long position in European gasoline for 2027 (e.g., EBOB Jun27). (rc)
