20.01.202618:27:43UTC+00Gasoline Rebounds

Gasoline futures for delivery in New York Harbor surged past $1.82 per gallon, reaching levels not seen since early December. This increase aligns with a broader uptick in oil benchmarks as demand rebounds following the holiday slowdown. The surge was primarily caused by an unexpected supply disruption; a fire at the GTES 4 power station led Tengizchevroil to cease production at the Tengiz and Korolevskoye fields. This resulted in the cancellation of export cargoes and reduced the availability of sour crude, a key component for refiners to produce gasoline blendstocks. The shortage of this crude supply drove up the price of benchmark crude, elevating refinery input costs and strengthening gasoline profit margins. The impact has been further intensified by logistical challenges and timing issues. Regional export bottlenecks and seasonal refinery maintenance have increased vulnerability in the supply chain for the front-month contracts, despite overall gasoline inventories remaining above seasonal averages.