- Colonial Pipeline's days-long shutdown of the main line that moves gasoline to the Atlantic coast from the Gulf coast has caused the unintended effect of starting to alleviate the glut of domestic gasoline supply, Reuters reports.
- "The longer it's down, the more bullish it is for gasoline," says Energy Aspects analyst Andrew Echlin. "You add that to all the refinery shutdowns and the limited supply, and East coast refiners could see a bump in margins as well."
- The U.S. east coast has been weighed down by bloated gasoline inventories, which are still 10% above the five-year average at ~64.9M barrels, but U.S. gasoline margins jumped today to a near one-month high of $13.68, and gasoline futures gained as much as 1.9% to $1.4128/gal.
- Colonial Pipeline is owned by Koch Industries, South Korea’s National Pension Service, Royal Dutch Shell (RDS.A, RDS.B, SHLX), KKR and others.