New Strategy for Gasoline from Goldman Sachs: Transition from Diesel to Gasoline

In the report published by the team including Goldman Sachs analysts Yulia Zhestkova Grigsby and Daan Struyven, it was stated that the main reason for the new recommendation on gasoline prices was that refineries shifted their production from diesel to gasoline.

Analysts pointed out that this change rapidly tightened the supply in the gasoline market.

Global fuel markets have been under pressure this year due to the impact of the US-Iran conflict as well as the Russia-Ukraine war. In this process, Ukraine intensified its attacks on Russia's refineries.

While the increase in the prices of fuel products in the USA exceeded the increase in crude oil prices, diesel futures prices closed at record levels. The average retail pump price of diesel has also reached an all-time high.

Goldman Sachs analysts stated in their report dated September 16 that there is a possibility that diesel prices will rise further. However, analysts evaluated that gasoline has more potential for price increase under current conditions.

The reason behind this view was the more resilient demand for gasoline and the relative changes in stocks.

Based on these considerations, Goldman Sachs ended its previous recommendation to profit from price movements between different diesel contracts.

The bank instead recommended taking a long position for mid-2027 European gasoline.