US gasoline futures rose above $3.21 per gallon, extending gains to a two-week high as geopolitical tensions in the Strait of Hormuz remained elevated following strikes on vessels transiting near the waterway. Additional upward pressure came from the ongoing conflict between Russia and Ukraine, which shows no sign of easing despite recent meetings between Ukrainian and US envoys, with energy infrastructure continuing to be targeted.
Against this backdrop, global refining capacity remains tight, and US refiners have little room to increase output. This is reflected in continued inventory drawdowns, with EIA data showing that US gasoline stocks fell by 1.173 million barrels in the week ending August 28th.
Even so, US Energy Secretary Wright emphasized that policymakers favor supply-side measures to support energy flows. Other officials rejected the notion that an export ban is being considered, noting that the end of the summer driving season could soften gasoline demand, while adjustments to fuel-blending requirements could help lift production.
