US gasoline futures hovered around $3.06 per gallon as traders balanced rising tensions between the United States and Iran against expectations for some relief at the pump. President Donald Trump is expected to meet with US oil refiners on Tuesday to discuss short-term steps to address refining capacity, which is already running near its limits.
Goldman Sachs has warned of a tightening global refining market, with prices for refined products far outpacing the rise in crude oil. In the week ending August 21st, gasoline inventories fell by 2.536 million barrels, adding to concerns over supply.
Strong demand is also underpinning prices. Heavy driving is anticipated over the Labor Day weekend, and August is on track to be the most expensive on record at nearly $4 per gallon, according to AAA. At the same time, geopolitical strains have sidelined nearly 10% of global refining capacity, with Russian output near multi-year lows. Fresh clashes between the US and Iran around the Strait of Hormuz have further heightened caution among operators about transiting this critical shipping lane.
