US gasoline futures slipped to about $3.26 per gallon on Thursday, paring gains from the previous session as traders assessed mixed geopolitical signals. Iran and Oman reached a deal on how to divide their respective shares of the Strait of Hormuz’s waters and associated revenues, but Tehran warned that the agreement alone would not be enough to fully reopen the crucial shipping corridor. At the same time, crude flows from the Persian Gulf appeared to be continuing.
On the downside, the retreat in prices was limited by reports that Russia is preparing to step up attacks on Ukraine after concluding that peace talks have reached an impasse. The prospect of an escalation heightened concerns that Russia’s restrictions on refined-product exports could remain in place for longer, particularly as Ukrainian strikes have driven Russian refinery utilization to multiyear lows.
In this context, EIA data showed that US gasoline inventories fell by 2.536 million barrels in the week ending August 21, a larger draw than expected, leaving stockpiles about 6% below their five-year average.
