US gasoline futures rose above $3.29 per gallon, extending gains to trade near a two-week high as refineries came under increasing pressure from disruptions to energy supplies. Iran-backed Houthi militants reportedly struck several energy facilities in Saudi Arabia, while a refinery in Russia’s Perm region was also targeted by Ukraine.
At the same time, US refineries are running close to full capacity, with some operators moving forward their usual fall maintenance schedules in an effort to keep production elevated. Data from the EIA showed that US gasoline inventories declined by 1.173 million barrels in the week ending August 28th, extending a series of drawdowns in recent weeks.
As a result, retail gasoline prices climbed to a record Labor Day average of $4.15 per gallon, even as demand eased following the end of the summer driving season. Some price relief may emerge from the seasonal switch to cheaper winter-grade gasoline.
Meanwhile, Iran said it had made progress with Oman on establishing a temporary safe-passage corridor through the Strait of Hormuz.
