US Export Ban Talk Widens WTI Crude Discount
Talk of a potential US diesel export ban has widened the discount for US crude oil futures against the global Brent benchmark. Markets expect domestic refiners to process less crude if diesel output remains trapped.
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West Texas Oil traded as much as $12.02 a barrel under Brent Crude Oil on Thursday afternoon amid discussion in the United States over a potential diesel export ban. That discount is the largest since May 6, reflecting market expectations that refiners will process less crude if diesel output gets stranded domestically. While the move could provide immediate relief from record retail prices, it risks triggering higher gasoline costs and longer-term diesel shortages.
