Gasoline Holds Near 2-Month High

Gasoline futures in the US rose above $3.30 per gallon, remaining close to their highest level since late May, driven by growing concerns over global refined fuel supplies. The collapse of the US-Iran truce and renewed tanker attacks in the Strait of Hormuz heightened fears of disruptions to fuel shipments from the Persian Gulf. Additionally, Ukrainian strikes on Russia's energy infrastructure continued to hamper operations at major refineries. US and global refiners also reduced gasoline output in favor of higher-margin diesel and jet fuel production, while strong overseas demand pushed US fuel exports to record highs. EIA data showed gasoline inventories fell by 1.5 million barrels in the week ending July 10, leaving stockpiles about 14 million barrels below their five-year seasonal average and at their lowest level for this time of year since 2012. The US gasoline crack spread climbed to about $59 per barrel, its highest level since June 2022.

US gasoline prices held near $3.30 per gallon, remaining near its highest level since late May, supported by growing concerns over global supply disruptions. US forces carried out new strikes against Iranian targets and reinstated a naval blockade on Iranian shipping in the Strait of Hormuz. President Donald Trump threatened additional attacks if Tehran does not return to negotiations, while also stepping back from a proposed 20% fee on shipments passing through the waterway. The developments further amplified supply concerns from ongoing disruptions to Russian refining capacity. Data from Energy Aspects showed Russian gasoline production falling to around 65% of seasonal consumption levels after Ukrainian drone attacks disrupted operations at major gasoline refineries, including NORSI and Omsk. Meanwhile, EIA data showed US gasoline inventories declined by 1.533 million barrels in the week ending July 10.

US gasoline prices rose toward $3.20 per gallon, reaching their highest level in seven weeks as renewed geopolitical tensions heightened concerns over global supply disruptions. President Donald Trump announced plans to restore a blockade on Iranian vessels passing through the Strait of Hormuz while also imposing a 20% charge on all other cargo using the waterway, raising fears of disruptions to energy supplies. Meanwhile, Ukraine intensified attacks on Russia's energy infrastructure, targeting oil depots in the Stavropol region and storage facilities at the port of Kavkaz in an effort to disrupt Moscow's war efforts. Kazakhstan's Caspian Pipeline Consortium also reported a 7% decline in June shipments due to maintenance at the Tengiz oilfield and lower Russian flows. Adding to the pressure, reduced refining activity, at roughly 65% of seasonal average consumption, contributed to fuel shortages across Russia, which introduced a ban on exports of gasoline.