Goldman Sachs Shifts Focus to Gasoline Amid Tight Fuel Supplies

Global fuel market tensions have led to rising gasoline prices, prompting Goldman Sachs to adjust its trading strategy. The bank's analysts, Yulia Zhestkova Grigsby and Daan Struyven, state that refiners are shifting production from gasoline to diesel, tightening the gasoline market.

This shift is a result of ongoing global fuel shortages, exacerbated by US-Iran tensions and the Russia-Ukraine war. Diesel futures settlement prices have hit record highs in the United States, with average retail diesel prices also surging to historic levels.

Goldman Sachs believes that despite potential further price increases for diesel, gasoline currently offers greater upside potential due to more resilient demand and relative changes in inventories.