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Market Chatter: Vitol Sees Rising Risk of Gasoline Tightness Amid Summer Demand Surge

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Gasoline could emerge as the next fuel market under pressure as inventories sit below seasonal norms and the Iran conflict continues to disrupt petroleum trade flows, Bader Nooruddin, regional head of research at Vitol, Bloomberg reported Wednesday.

The conflict has hit diesel and jet fuel markets the hardest so far, as export disruptions through the Strait of Hormuz reduced supplies from Middle East refiners.

Refiners in the US and other regions have increased diesel and jet fuel output to address supply shortages, reducing gasoline production and tightening supplies of other refined products.

"Gasoline could be the next product to get impacted," Nooruddin said at S&P Global's Middle East Petroleum & Gas Conference in London.

Nooruddin added inventories in the US and global gasoline markets remain well below seasonal norms, highlighting mounting supply strains.

Demand for both gasoline and jet fuel is set to rise as the northern hemisphere enters its summer holiday season, potentially creating competition for available supply.

Vitol didn't immediately respond to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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