US gasoline futures slipped below $3.50 per gallon after briefly reaching $3.53, the highest level since May 20th, as improving traffic through the Strait of Hormuz and renewed diplomatic efforts eased immediate supply fears. Concerns over prolonged disruptions to Saudi Arabia’s East-West pipeline also receded following reports that the critical route could resume partial operations within days.
At the same time, the onset of winter and rising heating demand are prompting refiners to shift production toward higher-priced diesel, tightening gasoline supplies. Persistent Ukrainian strikes on Russian refining facilities have added to supply risks, with Russia expected to extend its diesel export ban beyond September.
Against this backdrop of geopolitical tension and constrained supply, the US national average price for regular gasoline rose to $4.48 per gallon on September 21st, edging closer to this year’s peak of $4.56 recorded on May 21st.
