Gasoline Rises to Four-Month High

US gasoline futures held above $3.50 a gallon, its highest level since May 21st, following President Trump's remarks at the UN on the conflict with Iran. The President stated that a deal with Iran could be reached after the US midterm elections. Earlier in the session, Iran had proposed reopening shipping through the Strait of Hormuz within seven days, although contingent on the US lifting its blockade. Meanwhile, the crack spread rose to record highs amid widening refining margins due to rising refined fuel prices. 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 also contributed to elevated prices, with several refineries either fully or partially shut down. As a result, Russia is set to extend its diesel export ban beyond September.

US gasoline futures fell to around $3.40 a gallon, extending losses for a second consecutive session, after reports that Iran proposed reopening Strait of Hormuz shipping within seven days, contingent on the US lifting its blockade. The statement bolstered hopes for a conflict resolution as President Trump is set to address the UN General Assembly on Tuesday, where Iranian President Pezeshkian will also attend. Fears over prolonged disruptions to Saudi Arabia's East-West pipeline also abated following reports the critical line is under testing and could partially restart this week. Meanwhile, the crack spread hit record highs as refining margins widened amid rising refined fuel prices. 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 supported elevated prices, with Russia set to extend its diesel export ban beyond September.

US gasoline futures fell to around $3.45 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.