Morgan Stanley: Diesel Export Ban Could Raise US Gasoline Prices

Morgan Stanley has warned that restricting US diesel exports could end up costing drivers more at the gasoline pump, according to a note reported by BeInCrypto.

The bank's reasoning is that a ban would cause domestic diesel inventories to fill within weeks. With storage capacity exhausted, refiners would be forced to scale back processing, which in turn would reduce output of other refined products including gasoline.

Goldman Sachs echoes the concern

Goldman Sachs issued a similar warning on Wednesday, adding to the pushback against export restrictions from within the financial industry.

President Donald Trump is weighing curbs on diesel exports as his administration looks to address record diesel prices, the report said.

Refined fuel costs feed directly into headline inflation and transport expenses, making them a factor for broader macroeconomic conditions that markets, including digital assets, tend to track. The scope and timing of any export restriction remain undecided.