Export ban framed as short-term political solution with long-term market damage
3Today · 11h ago · 1 article · 1 post · 1 comment · 2 sources · development 3 of 3
Analysts note that export controls would send a chilling signal to markets and could prompt other countries to implement their own bans, creating long-term supply chain turbulence. White House has not yet acted on the proposal.
reason.com
“Diesel is a global commodity, and restricting American exports won't insulate us from global market dynamics.”
The devil is in the details, and Trump is an idiot. When he says Ban it could mean a cap. As in the national market is served at a mandated volume and rate where any production surplus is then sold on the international market. Such a system would indeed lower national rates even in the face of sky-high international rates. It would of course piss…
Diesel in storage is really low right now, refineries would produce a surplus for a few days until storage is back to normal though there's still the problem of how to get millions of barrels of diesel from Texas to California or Michigan or New York outside of the normal flow of products.
Chuck Grassley Senator (R–Iowa)
Ashley Hinson Representative (R–Iowa)
Donald Trump President
Doug Burgum Interior SecretaryGarrett Golding Energy analyst, Dallas Federal Reserve