US diesel export ban could backfire, worsening global crunch

US politicians are considering a temporary ban on US diesel exports to combat record-high prices ahead of the midterm elections, but analysts warn such a move could worsen the global crunch. The ban risks tightening an already strained international market and may fail to help regions reliant on imports. The US is a net exporter of distillates, producing 5.3 million barrels daily versus 3.6 million in domestic consumption, but the surplus is unevenly distributed. A ban could lower Gulf Coast prices without aiding the Northeast or West Coast, which depend on imports, and might prompt other countries to curb exports. Analyst Patrick De Haan suggests extending the Jones Act waiver instead, which facilitates moving surpluses to deficit regions. A ban could also reduce refiner output, cutting gasoline and jet fuel supplies, while global diesel supply is already weakened by Russian and Middle Eastern disruptions.