Morgan Stanley has warned that gasoline prices could rise if the United States proceeds with a proposal to ban diesel exports. The financial institution’s analysis suggests this policy could reduce refinery throughput, tightening both diesel and gasoline supply in the market. US diesel prices are already at a record high of $6.5107 per gallon, while gasoline stands at around $4.48 per gallon. Prediction markets reflect these concerns, showing a 10.5% likelihood of crude oil reaching a new all-time high by December 31. While restricting diesel exports might offer short-term domestic relief, it could inadvertently push up overall fuel prices by reducing refinery activity.
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