Global Refining Disruptions Fuel Higher Gas Prices

The US Energy Information Administration (EIA) has found that disruptions to global refining activities are affecting gasoline supplies. Tight gasoline supplies globally have led to elevated crack spreads, which measure the profitability of refining crude oil into petroleum products.

Crack spreads for gasoline in New York Harbor have averaged $1/gal higher than in 2025 since May. This is primarily due to disruptions to global refining activities in Russia, China, and the Middle East.

Tighter global supplies and higher prices have increased the cost of imported gasoline and boosted demand for US gasoline exports. The East Coast and West Coast rely on imports to supplement local production, with total US imports of gasoline averaging 32% below the five-year average since March.