A Diesel Export Ban?

Amid renewed discussions around a diesel export ban, US diesel prices have risen sharply to a national average above $6.50/gallon, prompting several Republican lawmakers to call for a temporary pause or limit on exports. Morgan Stanley views an outright ban as unlikely but sees a partial or time-limited restriction as possible. The US produces ~5.1 mbpd of diesel versus ~3.9 mbpd of domestic demand, with ~1.2 mbpd of net exports largely serving Latin America and Europe. A full ban could leave ~1 mbpd of surplus diesel on the USGC;