US gasoline futures climbed to about $3.50 per gallon, marking their highest level in more than three months as tight supplies continue to underpin prices. According to EIA data, US gasoline inventories declined by 2.536 million barrels in the week ending August 21st and have remained consistently below their five-year average in recent weeks. Refineries are already running near full capacity, leaving little scope to rebuild stockpiles. Demand is also lending support, with strong driving activity anticipated over the Labor Day weekend.
On the international front, geopolitical tensions have disrupted nearly 10% of global refinery capacity, intensifying supply pressures stemming from the Russia-Ukraine conflict. Attacks on Russian refineries have pushed utilization rates toward multi-year lows, while Russian gasoline output has dropped by nearly 20% compared with a year earlier. Offsetting some of these concerns, crude flows through the Strait of Hormuz have improved, as the proposed Iran–Oman corridor has helped ease fears of sharper tightening in crude supplies.
