Because of concerns that the US could restrict diesel exports, however, diesel prices moved sharply higher. Oil prices remained close to their lowest level in more than two weeks on Wednesday, as the market focused on improving crude supplies from the Gulf region.
Europe’s low-sulphur gasoil premium over Brent crude futures climbed to a record of about $95 a barrel. Because of a global shortage, trump has supported the proposal as a way to bring down diesel prices, which have reached record highs.
“Brent is being underpinned by surging gasoil prices amid renewed worries the US may introduce a diesel export ban,” said Ole Hansen, head of commodity strategy at Saxo Bank. The biggest move in the energy market was seen in diesel. The diesel surge came after US President Donald Trump backed the idea of banning US diesel exports. A US diesel export ban could have a major impact on Europe. European countries have become heavily dependent on diesel and jet fuel imports from the US after the US-Israeli war on Iran disrupted supplies from the Middle East. The possibility of a US export ban has pushed diesel prices higher even while crude prices are under pressure. Analysts and market watchers have warned that restricting diesel exports may not solve the price problem. They say such a move could do little to bring down high energy prices and could instead create more supply problems and economic disruption around the world. The pipeline shutdown had disrupted Saudi crude exports. The closure stopped crude loadings at Yanbu port, making the reopening important for restoring oil flows.
