Gasoline Eases From 7-Week High

US gasoline futures dropped to around $3.31 a gallon, after reaching a seven-week high, while President Trump stated that Ukraine and Russia had agreed to refrain from striking energy infrastructure. President Zelenskyy later confirmed and stated Kyiv's readiness to suspend attacks if Russia halts strikes on its electricity systems and other energy facilities. However, Gulf negotiations over a temporary Strait of Hormuz shipping lane were delayed, while Saudi Arabia's closure of its East-West pipeline further compounded concerns over crude availability and refinery feedstock amid ongoing infrastructure attacks and shipping disruptions. Meanwhile, prediction markets see a high probability that the average US gasoline price will surpass $4.60 in 2026, having already reached $4.32 on September 14th, according to AAA.

US gasoline prices rose above $3.37 per gallon, nearing a seven-week high, driven by intensifying supply disruptions. Saudi Arabia’s closure of its East-West oil pipeline has compounded ongoing energy infrastructure attacks and shipping disruptions through the Strait of Hormuz, raising concerns over crude availability and refinery feedstock supplies. Disruptions along Yemen’s Red Sea coast are also constraining shipping through the Bab el-Mandeb Strait, while attacks on Russian refineries are adding to global refined-product supply risks. EIA data showed US gasoline inventories rose by 1.3 million barrels in the week ended September 4 but remained 5% below the five-year average. Fuel production also declined despite US refineries operating near full capacity, limiting their ability to boost output further even as strong refining margins incentivized refiners to maximize production. National regular gasoline averaged $4.30 a gallon on September 11, according to AAA.

US gasoline futures eased to around $3.35 a gallon after reaching a high of $3.45 earlier in the session, although remaining elevated as the conflict in the Middle East shows no sign of waning. Iran warned of counterstrikes should the US hold military pressure, while Iran-backed Houthis have advanced control of the Bab al-Mandeb Strait. Ukrainian strikes on Russian infrastructure also squeezed its refined output. Meanwhile, the IEA cut its global oil demand outlook due to reduced supply and higher refined product prices. Additionally, EIA data showed that US gasoline inventories rose by 1.269 million barrels in the week ending September 4th, although fuel production declined even with US refineries operating near full capacity, as higher refining margins provide incentive to maximize production even as the broader oil system remains constrained. The average national regular gasoline price in the US climbed further to $4.3 a gallon on September 11th, according to AAA.