An emergency fuel waiver by the Environmental Protection Agency is allowing refineries and refined product terminals to supply gasoline with a higher Reid vapor pressure this summer than previously permitted. As we discuss in today’s RBN blog, the waiver may well increase gasoline supply and improve refinery and blender economics.
The U.S. is seeing softer domestic demand for traditional fuels, but pockets of the country remain highly dependent on imported gasoline, jet fuel and diesel. Today, we’ll zero in on which PADDs are at the highest risk for shortages and price spikes if the Iran war drags on for an extended period.
It’s been eight weeks since the steady flow of crude oil and refined product tankers out of the Persian Gulf ended, and the impacts on refineries and product suppliers in key parts of the world are becoming clearer. In today’s RBN blog, we discuss the state of refining in the U.S., Europe and the Asia-Pacific region.
BP, which saw its earnings more than double to $3.2 billion in Q1 2026 due in large part to a spike in crude oil prices as a result of the war in Iran, said April 28 that the full effect of those higher prices on earnings and refinery margins won’t be felt until the second quarter.
USGC crack spreads are easing in April, but margins remain well above historical norms as diesel and gasoline cracks stay elevated year over year.
The West Coast, particularly California, has been the U.S. region hardest hit by the war with Iran and the closure of the Strait of Hormuz, particularly regarding the Golden State’s ability to obtain refined product imports. Today, we discuss the impact of the closure.
Nashville is known for its music, but it’s also a fast-growing gasoline and diesel market, uniquely positioned between the Gulf Coast and Midwest. With major development projects planned, such as the new Tennessee Titans stadium, it’s getting to be a tight squeeze for the area’s fuel terminals.
The ongoing conflict between the U.S. and Iran and the near-total closure of the Strait of Hormuz isn’t just stranding significant volumes of refined products in the Persian Gulf. It’s also resulting in potentially extensive and long-lasting damage to some refineries there and trapping crude oil that Asian refiners depend on.
The continuing U.S. and Israeli war against Iran and the rapid expansion of data centers and AI dominated the conversation at this year’s CERAWeek energy conference in Houston, which gathers more than 10,000 attendees from more than 80 countries.
Refinery margins are skyrocketing as fuel gains outpace crude, with refinery runs up 850 Mb/d compared to the same week in 2025.
