Gasoline Futures Rebound

US gasoline futures traded near $3.12 a gallon, rebounding from recent losses, as Middle East tensions escalated following US strikes on Iran and renewed Israeli threats against Tehran, raising concerns over further energy supply disruptions. Meanwhile, the national average regular gasoline price in the US climbed to $4.14 on September 3rd, according to AAA, while EIA data showed US gasoline inventories fell 1.173 million barrels in the week ending August 28th, reflecting continued draw backs in recent weeks while US refiners are operating at 98%, its highest level since August 2018, with several facilities delaying maintenance to keep production elevated. Heavy driving over the Labor Day weekend is also providing support. Adding to the pressure, Ukrainian strikes on Russian refining infrastructure pushed refinery runs to multi-year lows. Meanwhile, President Trump pressed refiners to boost domestic production of gasoline during a meeting earlier in the week.

US gasoline futures fell below $3.10 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. President Trump also urged refiners to build more refineries. Meanwhile, oil flows through the Strait of Hormuz have also continued despite escalating tensions. Still, EIA data showed US gasoline inventories fell 1.173 million barrels in the week ending August 28th, reflecting continued draw backs in recent weeks while US refiners are operating at 98%, its highest level since August 2018, with several facilities delaying maintenance to keep production elevated. Heavy driving over the Labor Day weekend is also providing support. At the same time, Ukrainian strikes on Russian refining infrastructure pushed refinery runs to multi-year lows.

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.