High Oil Prices Send U.S. Refiners Scouring for Alternatives
- Vacuum gasoil imports coming from as far as the Baltic Sea
- High demand has Houston VGO prices trading at 32-month high
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Skyrocketing crude oil prices have prompted cash-strapped U.S. refiners to look for alternative ways to maximize gasoline production during the peak of the summer driving season.
The fuel-makers are buying low-sulfur vacuum gasoil, or VGO, from abroad as a more economical option to maximize fuel production without increasing crude intake. As a result, VGO prices are at the highest since October 2018, with imports coming to the U.S. from as far as the Black Sea to meet demand.