Gasoline Futures Decline

US gasoline futures fell below $3.50 a gallon after touching $3.53, its highest level since May 20th, as improving flows through the Strait of Hormuz and renewed diplomatic prospects eased immediate supply concerns. Fears over prolonged disruptions to Saudi Arabia's East-West pipeline also abated following reports the critical line could partially restart within days. However, as winter approaches and heating demand rises, refiners are shifting output toward higher-priced diesel, tightening gasoline markets. Persistent Ukrainian attacks on Russian refining infrastructure have further heightened supply worries, with Russia set to extend its diesel export ban beyond September. Amid these geopolitical tensions, the US national average for regular gasoline climbed to $4.48 a gallon on September 21st, bringing it closer to this year’s record high of $4.56 reached on May 21st.

US gasoline futures fell to around $3.45 per gallon, slightly easing from an eight-week high, as expectations that Saudi Arabia could restore some disrupted exports soothed immediate supply concerns. The kingdom was reportedly seeking to restore about half the capacity of its East-West oil pipeline within days after drone attacks halted the key link to the Red Sea, while offering additional crude cargoes to Asian refiners via ship-to-ship transfers off Oman’s Sohar port. Nevertheless, risks remained as Saudi Arabia and Iran-backed Houthi forces exchanged fresh strikes. Meanwhile, EIA data showed US gasoline inventories unexpectedly rose for a second consecutive week, increasing by 794,000 barrels in the week ended September 11, while refinery utilization remained elevated at 96.8%, despite easing from 97.8% a week earlier. However, approaching seasonal refinery maintenance could constrain production and remains a threat to refined-product supplies.

US gasoline futures held near $3.40 a gallon, remaining close to their highest level in eight weeks, as expectations that Saudi Arabia could restore some of its disrupted exports eased immediate supply concerns. The kingdom indicated it could restore around half of the damaged East-West pipeline’s capacity within days and resume full operations within six weeks, while also offering additional cargoes through ship-to-ship transfers near Oman. Meanwhile, EIA data showed US gasoline inventories unexpectedly rose for a second consecutive week, increasing by 800 thousand barrels in the week ending September 11, as refineries continued to operate at elevated capacity, albeit at a slightly lower rate of 96.8%, while delaying non-essential work. However, approaching seasonal fall maintenance remains a threat to refined-product supplies.