Gasoline Extends Decline
US gasoline futures fell to around $3.40 a gallon, extending losses for a second consecutive session, after reports that Iran proposed reopening Strait of Hormuz shipping within seven days, contingent on the US lifting its blockade. The statement bolstered hopes for a conflict resolution as President Trump is set to address the UN General Assembly on Tuesday, where Iranian President Pezeshkian will also attend. Fears over prolonged disruptions to Saudi Arabia's East-West pipeline also abated following reports the critical line could partially restart within days. Meanwhile, the crack spread hit record highs as refining margins widened amid rising refined fuel prices. As winter approaches and heating demand rises, refiners are shifting output toward higher-priced diesel, tightening gasoline markets. Persistent Ukrainian attacks on Russian refining infrastructure have further supported elevated prices, with Russia set to extend its diesel export ban beyond September.
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40 a gallon, extending losses for a second consecutive session, after reports that Iran proposed reopening Strait of Hormuz shipping within seven days, contingent on the US lifting its blockade. The statement bolstered hopes for a conflict resolution as President Trump is set to address the UN General Assembly on Tuesday, where Iranian President Pezeshkian will also attend. Fears over prolonged disruptions to Saudi Arabia's East-West pipeline also abated following reports the critical line could partially restart within days. Meanwhile, the crack spread hit record highs as refining margins widened amid rising refined fuel prices.
As winter approaches and heating demand rises, refiners are shifting output toward higher-priced diesel, tightening gasoline markets. Persistent Ukrainian attacks on Russian refining infrastructure have further supported elevated prices, with Russia set to extend its diesel export ban beyond September.