EU anti-Russian sanctions may lead to gasoline shortages in the U.S. in summer

The U.S. East Coast states, including New York, may face a shortage of gasoline during the summer season due to the EU’s February restrictions on the supply of petroleum products from Russia.

Currently, seasonal fuel stocks in storage are at their lowest level in 10 years. At the same time, the need for more careful maintenance of refineries in winter will further deplete current reserves.

The EU’s imposition of restrictions on Russian oil products will limit Europe’s ability both to provide itself with fuel and to send it to the US East Coast, which is increasingly dependent on such supplies in the summer season.

This state of affairs could once again cause fuel prices to spike in the United States, which would have a negative impact on the ratings of President Joe Biden, who has made curbing the rise in fuel costs one of his priorities.

In order to compensate for the supplies from Europe, companies will have to look for new sources of replenishment. One option would be to redirect fuel from the Gulf of Mexico to the Caribbean and then to the U.S.

In addition, the U.S. could try to increase supplies from Asia and the Middle East, but the logistical difficulties associated with such a decision, the agency points out, will not change the situation noticeably.

With the December 5, 2022 came into force the EU embargo on maritime oil supplies from Russia, the G7 countries, the EU and Australia imposed a price ceiling on Russian oil delivered by sea at $ 60 per barrel for its subordinate ships and territories.

Since February 5, 2023 will begin to operate similar restrictions on the supply of petroleum products from Russia, but the size of the “ceiling” is still unknown. In December, Russian President Vladimir Putin signed a decree on retaliatory measures, prohibiting supplies of Russian oil from February to the buyers who joined this restriction. The document comes into force on February 1, 2023 and is valid until July 1, 2023.

You may be interested: The COVID-19 emergency will be cancelled as of May 11