Surging Gasoline Prices Add Inflation Risk in US Election Year

(Bloomberg) -- Disruptions on the world’s major trade routes, refinery closures and resurgent demand are pushing up global fuel prices and making forecasts difficult in the run-up to a US presidential election in which inflation will be a key issue. Most Read from BloombergIncreases in the two most-consumed fuels are outpacing those for crude oil in some of the world’s most important markets. And while more than a million barrels-a-day of new refining capacity is set to come online this year, these projects are notoriously prone to delays. There’s a risk that premium gasoline prices could reach a multi-year high this year, said Mukesh Sahdev, head of oil trading and downstream research at Rystad Energy AS. Strong demand growth for refined products will be roughly in line with net gains in refining capacity, this year and next, he said.