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Crude oil prices hover near $100 per barrel as supply shortages and potential US fuel export bans create market volatility. Analysts warn that restricting exports to lower domestic prices could backfire, potentially triggering a broader economic shock and further inflationary pressure on the S&P 500.
With diesel prices at record highs and supply shortages worsening, policymakers are considering an export ban as a tool to increase domestic supply and lower fuel costs for consumers.
Experts argue that a ban would discourage refineries from producing extra distillate, potentially leading to shortages in gasoline and jet fuel, which could cause prices to rise further.