API Warns U.S. Diesel Export Bans Could Worsen Global Fuel Shortages
What happened
The American Petroleum Institute (API) has issued warnings regarding proposed restrictions on U.S. diesel exports. API stated that such bans could reduce domestic refinery output and further tighten global fuel supplies amid record-high diesel prices. The organization noted that the Gulf Coast accounted for roughly 90% of U.S. distillate exports last year.
From worldoil.com
Why it matters
API argues that current diesel shortages are due to disruptions in global refining and energy flows, citing issues like attacks on Russian refineries and disruptions in the Strait of Hormuz. The API warned that an export ban could force Gulf Coast refiners to process less crude, potentially reducing U.S. refinery runs by 1.9 MMbpd and gasoline production by up to 750,000 bpd.
From worldoil.com
Who's involved
- American Petroleum InstituteU.S. trade association advising on the oil and natural gas industry
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- ExxonMobilSpeculative
ExxonMobil could face reduced operational capacity if the export ban impacts its supply chain.
- MobilSpeculative
Mobil could face reduced operational capacity if the export ban impacts its supply chain.
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The entities involved
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Sommers
island in Russia
Nothing else this week.
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American Petroleum Institute
U.S. trade association for the oil and natural gas industry
- The American Petroleum Institute warned against policy moves that could harm the global economy, amidst a premium of over $95 per barrel for Brent crude, while calls opposed a ban on US diesel exports.
- Dana Nessel filed lawsuits against oil companies in Michigan, while Michigan also sued API over market dominance, alongside similar climate lawsuits in Delaware.