FX.co ★ Gasoline Tracks Crude Higher

Gasoline futures in the United States have surged past $2.01 per gallon. This increase is attributed to rising crude oil prices, limited refining capacity, and geopolitical tensions that have outweighed the temporary stockpile increases, highlighting the tight balance within the market. Crude oil prices recovered following a modest production increase from OPEC+, viewed as an indication of ongoing supply restraint, and were further bolstered by geopolitical unrest, including Israeli military actions in Qatar and renewed pressure from US tariffs. Despite an unexpected rise in US gasoline inventories by 1.46 million barrels for the week ending September 5th—breaking a seven-week streak of declines—the increase was counterbalanced by limited refining operations and robust seasonal demand. Additionally, transitions to summer gasoline blends and ongoing refinery maintenance continue to restrict product availability.