US gasoline futures climbed toward $3.30 per gallon, snapping a three-session losing streak, as optimism over a potential reopening of the Strait of Hormuz was outweighed by concerns about tighter supply.
The latest EIA data showed that US gasoline inventories fell by 2.536 million barrels in the week ending August 21st, a decline far larger than expected. Stockpiles are now about 6% below the five-year average, highlighting persistent tightness in the gasoline market. Reflecting this, AAA reported that the average US price for regular gasoline rose to $4.101 per gallon on August 26th.
On the international front, Ukraine has continued to target major Russian refineries, pushing refinery runs toward multiyear lows, while Moscow has extended its gasoline export ban, further constraining global supply.
Some upward pressure on prices was tempered by news that Oman and Iran reached an agreement on the use of the Strait of Hormuz. However, Tehran cautioned that the deal would not result in an immediate reopening of the waterway.
At the same time, Saudi Arabia’s oil loadings appear to be rising sharply as the kingdom redirects shipments to avoid threats from Yemen’s Houthi movement in the Red Sea.
