Gasoline Futures Retreat

US gasoline futures traded near $3.12 a gallon, snapping a five-session winning streak, after Tuesday’s meeting between President Trump, Energy Secretary Wright, and US refiners. Talks focused on fuel-blending quotas, with refiners arguing that it was contributing to higher fuel prices as corn and soybeans surged to nearly three-year highs amid adverse weather. President Trump also urged refiners to build more refineries. Meanwhile, prospects of higher Venezuelan oil inflows could provide some relief, although refiners are already operating near full capacity, with several facilities delaying maintenance to keep production elevated. Oil flows through the Strait of Hormuz have also continued despite escalating tensions. Still, the crack spread remains near multi-year highs, supported by strong demand ahead of the Labor Day weekend with heavy driving. At the same time, Ukrainian strikes on Russian refining infrastructure pushed refinery runs to multi-year lows, adding further support.

US gasoline futures rose above $3.16 per gallon, as traders assessed refining capacity and its implications for fuel-pump prices. Goldman Sachs has warned of tightness in global refining, with the crack spread near multi-year highs, as Russian refining declined to near multi-year lows and fresh strikes from the US on Iranian targets around the Strait of Hormuz kept transit in the waterway cautious. Strong demand is also supporting prices, with heavy driving expected over Labor Day weekend. Meanwhile, EIA data showed gasoline inventories for the same week fell 2.536 million barrels in the week ending August 21st, while the average US regular gasoline price edged down to $4.07 per gallon at the end of August, despite continued tightness in refined supply. President Donald Trump and Energy Secretary Wright are set to meet US oil refiners on Tuesday to discuss near-term measures regarding refining capacity, which is already operating near full capacity, in an effort to bring down prices.

US gasoline futures fluctuated around $3.10 per gallon, as traders weighed fresh US-Iran hostilities against expectations of easing pump prices. Goldman Sachs has warned of tightness in global refining, with prices of refined products far outpacing gains in crude. Meanwhile, gasoline inventories fell 2.536 million barrels in the week ending August 21st. Strong demand is also supporting prices, with heavy driving expected over Labor Day weekend and August on track to be the most expensive on record near $4 a gallon, according to AAA. Geopolitical tensions have also taken nearly 10% of global refinery capacity offline, with Russian refining near multi-year lows, while fresh strikes between the U.S. and Iran around the Strait of Hormuz kept operators cautious about transiting the waterway. Meanwhile, President Donald Trump is expected to meet US oil refiners on Tuesday to discuss near-term measures regarding refining capacity, which is already operating near full capacity.