Americans are paying the high fuel prices as the prices skyrocketed because the United States ships more refined products abroad to supply European markets.

Iran PressAmerica: US fuel prices have surged faster than crude oil prices in the last month as the United States has shipped more refined products abroad to supply European markets following Russia's military campaign in Ukraine.

Traders say the world's stockpiles of fuel are not likely to increase quickly as big producers like OPEC, are increasing production slowly. The tightness in fuel markets is more alarming, they say, because it shows refiners are having trouble meeting demand even as more crude becomes available through big reserve releases, Reuters reported.

"Things are really tight with diesel and world demand," said Aaron Milford, chief executive of Magellan Midstream Partners, in an earnings call on Thursday.

Global stockpiles of crude, gasoline and other fuels are dwindling as demand has rebounded to pre-pandemic levels. Supplies tightened further following the Ukraine conflict and subsequent sanctions on Russia from the United States and allies.

Washington has released millions of barrels from US strategic reserves, helping control the price of crude. But inventories of products are still falling.

Since the start of the Russian attack on Ukraine on Feb. 24, US crude futures have risen nearly 17%, Refinitiv Eikon data shows, while US gasoline futures have jumped over 30% and US heating oil futures, a proxy for diesel, have gained by 40%.


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