Gasoline Rises on Tight Supply

US gasoline futures rose to around $3.50 per gallon, reaching over a three-month high as tight gasoline supplies keep prices elevated. EIA data showed US gasoline inventories fell by 2.536 million barrels in the week ending August 21st, leaving inventories consistently below the five-year average in recent weeks. US refineries are already operating near maximum capacity, leaving limited room to rebuild inventories. Demand is providing additional support, with heavy driving expected over the Labor Day weekend. Elsewhere, geopolitical tensions have disrupted nearly 10% of global refinery capacity, with the Russia-Ukraine conflict adding to supply pressures. Attacks on Russian refineries have pushed refinery runs toward multi-year lows, while Russian gasoline production has fallen nearly 20% from a year earlier. However, oil flows through the Strait of Hormuz improved, as the proposed Iran-Oman corridor reduced perceived risks of tighter crude supplies.

US gasoline futures rose to around $3.40 per gallon, hitting a five-week high, as supply concerns intensified amid rising geopolitical risks. US-Iran diplomatic efforts remained stalled after Washington ruled out reviving the terms of a June agreement and said it was not currently negotiating with Tehran. The US has instead intensified pressure through new sanctions earlier this week, which Iran condemned as hostile and ineffective. Meanwhile, Black Sea shipments faced heightened risks as Russia considers intensifying military pressure on Ukraine after determining that peace negotiations have reached a dead end, while strikes on Russian refineries pushed refinery runs toward multi-year lows. In the US, EIA data showed gasoline inventories fell by 2.536 million barrels in the week ending August 21, well above expectations, leaving stocks 6% below the five-year average and underscoring continued tightness in the fuel market.

US gasoline futures traded around $3.3 per gallon, as traders weighed geopolitical risks across key energy chokepoints. Black Sea shipments remained at risk as Russia considers intensifying military pressure on Ukraine after determining that peace negotiations have reached a dead end. Strikes targetiing Russian refineries pushed refinery runs toward multi-year lows. In the Middle East, a tanker attack kept supply risks elevated. Still, flows through the strait appear to have increased as regional producers boost exports. Iran and Oman reached an agreement on the allocation of their respective shares of the Strait of Hormuz’s waters and related revenues, although Tehran cautioned that the deal alone would not be sufficient to reopen the strait. In the US, EIA data showed gasoline inventories fell by 2.536 million barrels in the week ending August 21, well above expectations and leaving stocks 6% below the five-year average, underscoring continued tightness in the fuel market.