New York experiencing shortage of gasoline due to sanctions
2023.01.30 13:52
New York experiencing shortage of gasoline due to sanctions
By Ray Johnson
Budrigannews.com – As a result of the European Union’s ban on Russian fuel during peak driving season, New York and a significant portion of the East Coast run the risk of running out of gasoline this summer.
Stockpiles of seasonal gasoline are already at their lowest level in roughly a decade, and extensive winter maintenance at refineries may further reduce stocks. The EU’s ban on Russian oil-product imports, which goes into effect on February 5, will put a strain on the feedstock supplies in the region.
As a result, the bloc won’t be able to make as much gasoline for itself or the US East Coast, which is increasingly dependent on transatlantic imports in the summer.
Consumers who are still reeling from last summer’s $5-per-gallon gas price could be burdened by the price increase that would result from such supply shocks. President Joe Biden, who uses prices as a weapon against political adversaries, has prioritized limiting fuel costs and would face difficulties as a result of rising pump prices.
Suppliers will need to be inventive in order to avoid running out of fuel in New York and the rest of the East Coast. Even though the United States is a net exporter of gasoline, the majority of the excess is located on the Gulf Coast, and transportation to the East Coast is constrained by the cost of waterborne shipping and a lack of pipeline capacity.
Energy Aspects, a London-based consultancy, says that suppliers could move fuel from the Gulf Coast to storage and blending facilities in the Caribbean, like the Bahamas, and then export it to the East Coast. The United States may also increase its imports from Asia and the Middle East, but due to the lengthy journey and high shipping costs, this option is unlikely to provide significant or immediate fuel savings.
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