US gasoline futures slipped below $3.20 a gallon after reaching a two-week high, weighed down by a weaker demand outlook. Energy Secretary Wright noted that the post–summer driving slowdown could support an inventory rebuild, even as stockpiles remain about 6% below the five-year average. US refineries continue to run near full capacity, with some operators postponing typical fall maintenance to sustain elevated output.
In parallel, China—the world’s largest crude importer—increased crude purchases in August as refiners ramped up runs to counter falling inventories, offering some relief to a tight global refining market. Nonetheless, Chinese gasoline demand is projected to decline by 8.7% in 2026, hastening the phaseout of surplus refining capacity.
Geopolitical risks added another layer of volatility. Tensions in the Middle East escalated after the US military conducted strikes on Iranian tankers, while Ukraine, for the first time, targeted an energy facility in Russia’s Arctic, further pressuring energy markets.
