Gasoline Hits 6-week High

US gasoline futures rose to around $3.35 a gallon, reaching their highest level since late July, as tensions in the Middle East show no sign of waning, reducing the outlook for refined fuel supply. Tehran stated it would continue counterstrikes if attacks from the US military persist. Adding to the pressure, Saudi Arabia reported that its crude oil output in August plunged to its lowest level since 1990, as the war in the Middle East continued to disrupt its export routes. Saudi and Yemeni officials stated that the Houthis are now nearing complete control of the Bab al-Mandeb Strait, while Russia's energy infrastructure remains pressured from persistent Ukrainian strikes. Meanwhile, EIA data showed that US gasoline inventories rose by 1.269 million barrels in the week ending September 4th, although fuel production declined even as US refineries are operating near full capacity. According to AAA, the average national US regular gasoline price jumped to $4.28 a gallon on September 10th.

Gasoline increased to 3.37 USD/Gal, the highest since July 2026. Over the past 4 weeks, Gasoline gained 7.1%, and in the last 12 months, it increased 70.57%.

US gasoline futures traded near $3.20 a gallon after rising to a two-week high, amid a reduced outlook for gasoline demand. Energy Secretary Wright stated that slowing demand following the end of the summer driving season could help rebuild inventories, which remain 6% below the five-year average, while US refineries are operating near full capacity, with some delaying seasonal fall maintenance to keep production levels elevated. Similarly, China, the world’s biggest crude importer, increased crude imports in August as refiners boosted production amid depleting inventories, offering some relief to a tight global refining market. However, gasoline demand in China is set to fall 8.7% in 2026, accelerating the elimination of excess refining capacity. Meanwhile, tensions in the Middle East intensified as the US military carried out strikes on Iranian tankers. Adding to the pressure, Ukraine attacked an energy facility in Russia’s Arctic for the first time.