Gasoline futures for delivery in New York Harbor rose above $3.70 per gallon in late April, the highest level since June 2022, as persistent supply disruptions in the Middle East further tightened feedstock availability for refiners. The United States and Iran have shown no willingness to compromise on each other's terms, prolonging opposing naval blockades that are preventing the passage of oil and product tankers through the Strait of Hormuz. Normal shipping through this key chokepoint has been suspended since early March, disrupting about 20 million barrels per day of crude and refined products destined for major importers.
At the same time, shortages of jet fuel and diesel in Europe and Asia have led major energy producers to prioritize distillate output over motor gasoline, intensifying supply risks in the gasoline market. As a result, US gasoline inventories fell by 6.1 million barrels in the week ending April 24th, far exceeding expectations of a 2.1 million barrel draw and marking the 11th consecutive weekly decline.