SunSirs: Vitol Warns of Tight Gasoline Supplies; Analysis of Related Oil Markets

Trading giant Vitol Group has warned that gasoline could be the next product to face severe supply tightness. While the blockade of the Strait of Hormuz—driven by conflict involving Iran—has significantly impacted diesel and jet fuel supplies, the shift in refinery output toward these fuels in the U.S. and other regions will inevitably reduce the production of other petroleum products, such as gasoline.

Vitol has explicitly warned that gasoline may become the next petroleum product to face a severe supply crunch. Driven by the risk of a Strait of Hormuz blockade, global refineries are prioritizing the production of diesel and jet fuel, which directly squeezes gasoline capacity. Strong expectations of tight supply and demand are providing a significant bullish boost to both gasoline spot and futures prices.

Liquefied Petroleum Gas (LPG) is a downstream product of oil refining. Disruptions to oil and gas supplies, combined with the shift in refinery capacity toward diesel and jet fuel, are expected to constrain LPG supplies. On June 3, 2026, the benchmark LPG futures contract (2607) on the Dalian Commodity Exchange (DCE) closed at 5,822 RMB/tonne, up 20 RMB/tonne from the previous trading day; supply-side bullish factors are expected to further support prices amidst this strong market trend.

Fuel oil is a refined petroleum product; while transport risks in the Strait of Hormuz provide some support for its supply, the impact of refinery production shifts on its output is relatively limited. On June 3, 2026, the benchmark fuel oil futures contract (2609) on the Shanghai Futures Exchange (SHFE) closed at 3,954 RMB/tonne, down slightly by 15 RMB/tonne, though current news developments offer minor bullish support for prices.

Petroleum asphalt is a downstream product of oil refining; current news focuses primarily on the refined oil sector, having a minimal direct impact on asphalt supply and demand. On June 3, 2026, the benchmark petroleum asphalt futures contract (2609) on the SHFE closed at 4,313 RMB/tonne, down 71 RMB/tonne from the previous trading day, with current news having a neutral impact on prices.

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