Gasoline Trades Near Five-Week Low

US gasoline futures rose above $2.85 per gallon after reaching a near five-week low, as traders weighed signs of easing tensions between the US and Iran against renewed Ukrainian attacks on Russian refining infrastructure. Ukraine struck two Russian oil refineries overnight at the Yaroslavl region, one of the country's largest, following a brief lull during late July that had allowed repairs and supply recovery. Russia's gasoline and diesel exports plunged 60% in July, prompting Moscow to extend its gasoline export ban through January 2027. Meanwhile, EIA data showed US gasoline inventories fell by 1.64 million barrels in the week ended July 31, exceeding expectations and leaving stocks 7% below the five-year seasonal average. Elsewhere, Iran and Oman reached an agreement on a temporary shipping route, though officials stressed it would not amount to a full reopening of the strategic waterway, while US officials continued to express confidence that a deal with Iran was nearing.

US gasoline futures fell toward $2.80 per gallon, a four-week low as traders priced in improving supply prospects. Iran announced an agreement with Oman on a shipping route through the Strait of Hormuz, raising expectations of more energy flows through the key waterway. Iranian officials said a joint statement was being finalized, with the route expected to remain operational for two to four months. However, they stressed that the arrangement does not amount to a full reopening of the Strait. President Donald Trump also said talks with Tehran were ongoing. However, supply concerns persisted elsewhere. In Russia, diesel and gasoline exports plunged 60% in July after Ukrainian strikes disrupted refinery operations, prompting Moscow to extend its gasoline export ban through January 2027. Meanwhile, EIA data showed US gasoline inventories fell by 1.643 million barrels in the week ended July 31, exceeding expectations and leaving stocks 7% below the five-year seasonal average.

US gasoline futures held near $2.85 per gallon on Wednesday after touching a one-month low of $2.80 earlier in the session, as growing optimism over a potential US-Iran agreement backed an outlook of improved supply. President Donald Trump said talks with Tehran were ongoing, while Iran and Oman continued discussions aimed at restoring tanker flows in the Persian Gulf. Still, prices remained about 24% above pre-war levels amid supply concerns from elsewhere. Yemen's Iran-backed Houthis claimed they had targeted a Saudi oil tanker in the Red Sea. In Russia, diesel and gasoline exports plunged 60% in July as Ukrainian strikes disrupted refinery operations, prompting Moscow to extend its gasoline export ban through January 2027 while increasing imports from Belarus, India, Kazakhstan, and Morocco. Meanwhile, EIA data showed US gasoline inventories fell by 1.643 million barrels in the week to July 31st, exceeding expectations and leaving stocks 7% below the five-year seasonal average.