FX.co ★ Gasoline Rebounds from Near 5-Year Low

Gasoline futures in the New York Harbor have risen to around $1.80 per gallon, recovering from a near five-year low of $1.70 per gallon recorded on January 6th. This change comes as the market assesses the potential impact of increased Venezuelan crude oil exports on U.S. refinery capacity. Despite the opportunity, many energy executives have shown reluctance in pursuing contracts with Venezuela due to concerns over the sustainability and political instability of its operations under the current regime, particularly while fuel prices are already low. This caution follows statements by President Trump indicating that the U.S. had secured future Venezuelan crude oil shipments. The possibility of these imports has bolstered the outlook for major refineries equipped to process the heavy sour crude sourced from the Caribbean, potentially increasing U.S. fuel supply. In related developments, Chevron, the sole U.S. company with operational licenses in Venezuela, announced it has chartered 11 tankers to boost fuel export capacity to the United States.