Gasoline Rises to Four-Month High
US gasoline futures held above $3.50 a gallon, its highest level since May 21st, following President Trump's remarks at the UN on the conflict with Iran. The US President stated that a deal with Iran could be reached with Tehran after the US midterm elections. Earlier in the session, Iran had proposed reopening shipping through the Strait of Hormuz within seven days, although contingent on the US lifting its blockade. Meanwhile, the crack spread rose to record highs amid widening refining margins due to 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 also contributed to elevated prices, with several refineries either fully or partially shut down. As a result, Russia is set to extend its diesel export ban beyond September.
50 a gallon, its highest level since May 21st, following President Trump's remarks at the UN on the conflict with Iran. The US President stated that a deal with Iran could be reached with Tehran after the US midterm elections. Earlier in the session, Iran had proposed reopening shipping through the Strait of Hormuz within seven days, although contingent on the US lifting its blockade. Meanwhile, the crack spread rose to record highs amid widening refining margins due to 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 also contributed to elevated prices, with several refineries either fully or partially shut down. As a result, Russia is set to extend its diesel export ban beyond September.