How a U.S. diesel export ban would play out, according to Goldman Sachs

How a U.S. diesel export ban would play out, according to Goldman Sachs How a U.S. diesel export ban would play out, according to Goldman Sachs U.S. diesel prices were $6.45 per gallon on Monday, according to AAA. . Fallon/ With the White House considering a potential diesel export ban, Goldman Sachs strategists have estimated how such a ban would play out. President Donald Trump said last week he would support a ban on U.S. diesel exports to help bring down costs after they recently reached their highest level at $6.53 a gallon.

Prices are currently hovering at the $6.45 mark, according to AAA, up 75% since this time last year. **See more: A diesel export ban could backfire — here’s why** Video 91/1 Skip Ad Continue watching after the adVisit Advertiser websiteGO TO PAGE Kevin Rudd on China, AI and U.S. Relations Play video: Kevin Rudd on China, AI and U.S. Relations Strategists at the New York-headquartered investment bank, led by Daan Struyven, head of oil research, wrote in a note over the weekend that if a ban is implemented, as stocks build, gasoline prices would likely temporarily ease.

For as long as storage remains available, they see prices falling by $0.25 per gallon. Don’t Short Yourself offers weekly money tips to help you earn it, stack it and grow it. I agree to the Terms of Use, Privacy Notice and Cookie Notice.

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The strategist estimate that diesel would be stored up after nine to ten weeks, and possibly sooner. And the diesel ban could spill over into the price of other products. They added that a decline in the production of diesel would then be associated with a fall in gasoline production — leading to price rises there too.

Once storage is full if a U.S. diesel export ban is in place, they forecast U.S. retail gasoline prices increasing by $0.3 a gallon every week. For Goldman, restrictions in the U.S. would have a ripple effect across diesel prices internationally, with each week of the ban lifting European diesel prices by just below 2%. But, it noted that strategic releases of diesel stockpiles in Europe could offset about half of the price spike.