Gasoline Hits Near 4-year High

Gasoline increased 5% to 3.3704 USD/Gal

Gasoline futures for delivery on the New York Harbor rose to above $3.3 per gallon in April, the highest in nearly four years, as the prolonged conflict in the Middle East worsened the supply shortage of oil for refiners. Iran struck and then seized multiple commercial vessels near the Strait of Hormuz shortly after US President Trump announced the continuation of the blockade for the chokepoint until a deal is reached. The developments were the latest to align with the likelihood that tanker movement through the Strait will remain halted for the near future, preventing exports from the region that usually supplies 20 million barrels per day of oil and refined product. The US blockade of Iranian crude spread the supply stress to Chinese teapot refiners, which were spared of the conflict until mid-April due to their large reliance on Iranian feedstock. Consistently, gasoline stocks in the US sank by 4.6 million barrels on the week ending April 17th, a 10th straight draw.

Gasoline increased to 3.35 USD/Gal, the highest since July 2022. Over the past 4 weeks, Gasoline gained 12.4%, and in the last 12 months, it increased 60.66%.