FX.co ★ Gasoline Climbs to Six-Week High

US gasoline futures climbed to around $3.35 per gallon, their highest level since late July, as persistent tensions in the Middle East cloud the outlook for refined fuel supplies. Tehran signaled it will continue retaliatory strikes if US military attacks persist. Further tightening the supply picture, Saudi Arabia reported that its crude oil production in August fell to its lowest level since 1990, with the ongoing regional conflict disrupting its export routes. Officials from Saudi Arabia and Yemen noted that Houthi forces are close to gaining full control of the Bab al-Mandeb Strait, while Russia’s energy infrastructure remains under strain from continued Ukrainian attacks. Meanwhile, EIA data showed that US gasoline inventories increased by 1.269 million barrels in the week ending September 4th, even as fuel production declined and US refineries ran near full capacity. According to AAA, the national average price for regular gasoline in the US surged to $4.28 per gallon on September 10th.