New sanctions against Russia will disperse the price of gasoline in the US

American gas stations are preparing to recalculate tariffs

The next anti-Russian sanctions, which the West intends to introduce from February 5 in relation to the export of our oil products, are capable of inflicting a retaliatory and rather painful blow on the economy of our ill-wishers. According to Bloomberg, the EU ban on fuel imports from our country will cause gasoline shortages in New York and much of the US East coast this summer, and prices at local gas stations may again jump to record levels.

The East Coast of the United States during the summer holidays is largely dependent on transatlantic fuel imports: their own fuel reserves are gradually depleted, so Americans have to rely on imported gasoline and diesel. Until recently, Washington had no problems with providing diesel fuel. The states regularly purchased motor fuel from Russian companies and did not experience a shortage at gas stations. From February 5, further sanctions will be imposed on suppliers from our country: domestic producers will have to face marginal energy prices that European countries intend to introduce together with the G7. The cost of fuel will be much lower than prices on international exchanges. Thus, the West intends to deal an irreparable blow to the Russian economy, which exists largely thanks to the export of energy resources.

Meanwhile, Washington, apparently, will not do without negative economic consequences. Seasonal gasoline inventories in the American East have plunged to their critically low levels in over a decade, Bloomberg reports, and intensive winter maintenance at refineries can only lead to further drawdowns. “Restrictions imposed by the European Union on Russian oil products will limit the European ability to both provide themselves with fuel and send it to the US East Coast, which is increasingly dependent on such supplies in the summer season,” the publication reports. Such a situation, the agency believes, may again lead to a jump in fuel prices at American gas stations: the cost of a gallon of gasoline (from 3.8 to 4.5 liters) can, like last summer, rise to $5, which will become a record for the domestic market of the country.

A year ago, Russian fuel was in the highest demand on the US market – about 10% of the US fuel market relied on oil products supplied from our country. Moreover, Russia even managed to dislodge Saudi Arabia from the place of superiority of energy suppliers in the United States, bringing exports to an astronomical level of 250,000 barrels per day. True, later the Americans refused to deal with domestic producers – small deliveries were preserved, but the shipment was carried out through European intermediaries.

“Now the market has narrowed,” said Sergey Suverov, investment strategist at Arikapital Management Company. – European consumers of the Russian “kerosene” themselves do not have enough fuel. For example, in Norway, which itself is an oil and gas producing state, the highest price for gasoline on the continent is recorded – about 145 rubles per liter of an ordinary 95th. It is unlikely that in such a situation the Norwegians will be happy to share fuel with the Americans, especially against the backdrop of mounting economic pressure against our country. The United States may try to increase supplies from Asia and the Middle East, but logistical obstacles do not allow such plans to be implemented online. Gasoline at American gas stations will continue to rise in price. True, it is unlikely that domestic producers will be able to take advantage of market situations: export opportunities to Western countries are limited due to sanctions, and they have to sell energy resources to Asia at significant discounts.”