New York Drivers May Get More Siberian Tiger in Their Tanks

Subscribe to Bloomberg | Quint
The Daily Newsletter
News & Stock Alerts

(Bloomberg) -- President Donald Trump doesn’t like high oil prices. What would he think about the higher prices attracting Russian-made gasoline to the U.S. Atlantic shores?

East Coast drivers could be putting Russian gasoline into their fuel tanks without even knowing it. Already strong imports of blending components like naphtha will be paired with gasoline after refining tax breaks and investments give Russia surplus fuel to sell. Exports into Europe and the U.S. Atlantic basins will rise by 75,000 barrels a day, Energy Security Analysis, Inc. principal Andrew Reed says in a research note.

Front-month gasoline futures on the New York Mercantile Exchange closed at the highest level since October 2014 on Thursday, further tantalizing Russia to ship gasoline into a high-priced market.

“Russia’s growing gasoline exports will be just one more step in the longer-term transformation of its refining sector’s role in international refined product markets,” Reed said. “Russia is emerging as a dynamic player in clean product markets, much more than just a diesel exporter.”

©2018 Bloomberg L.P.

Bloomberg
Stay Updated With Stock Market News on BloombergQuint
Subscribe to Bloomberg | Quint
The Daily Newsletter
News & Stock Alerts