Global gasoline supply has failed to recover from historically low levels despite additions of refining capacity in the Middle East and China.The price of gasoline is starting to surge everywhere, an inflationary omen for central banks and governments the world over.
Gasoline prices are often a topic of contention as those costs can be an essential daily expense for many, alongside food and rent. Energy prices are one of the many factors that have contributed to surging inflation globally. In the US, reining in prices at the pump will also be a crucial issue for President Joe Biden with the next election just over a year away, especially after he ordered the sale of a huge chunk of the nation’s strategic petroleum reserve last summer.
Global gasoline supply has failed to recover significantly from historically low levels despite additions of refining capacity in the Middle East and China. Even the US had the biggest expansion in more than a decade, and that’s before another refinery slated to shut by year-end got an unexpected extension.
In China, the largest crude importer, a range of indicators point to buoyant demand. Congestion levels in the 15 cities with the most car registrations have risen by about a quarter compared with January 2021, according to data from Baidu Inc. tracked by BloombergNEF. At the same time, commercial gasoline inventories have been estimated at the lowest since at least 2019.