U.S. Diesel Export Ban Would Hit Latin America Hardest: Goldman

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Goldman Sachs says a U.S. ban on diesel exports would particularly threaten Latin American countries that rely heavily on American supplies. Imports from the United States account for as much as half of diesel consumption in Mexico, Ecuador, Chile, and Peru, though global market adjustments could mitigate the disruption.

A potential ban on exports of diesel fuel from the United States would affect Latin America the most, Goldman Sachs has said, despite reports that the pain from such a ban would be the greatest for Europe. U.S. diesel imports cover as much as 50% of the fuel’s consumption across Mexico, Ecuador, Chile, and Peru, the investment bank said in a note quoted by Reuters, which makes these countries very vulnerable to a suspension in shipments abroad. “Supply will likely adjust quickly given the global nature of diesel markets, so in practice…