US Fuel Futures Resume Decline as Hormuz Diplomacy Eases Supply Concerns

US heating oil futures resumed their decline to about $3.26 a gallon after rising in the previous session, while a newer report identified US gasoline futures at around the same level. WTI traded near $82 a barrel on Aug. 26 and Brent settled below $88. Prices were pressured by signs of diplomatic progress involving the Strait of Hormuz, although Iran said an agreement with Oman on waterway revenue sharing would not by itself reopen the strategic route. Losses were limited by reports that Russia might intensify attacks on Ukraine after peace talks reached a dead end, raising concern that refined-product export restrictions could persist, while Ukrainian strikes pushed refinery runs toward multiyear lows. EIA data cited in the reports showed different fuel-inventory measures: distillate stocks fell by 2.2 million barrels, more than the expected 1.6 million-barrel decline, while gasoline inventories fell by 2.536 million barrels in the week ending Aug. 21, leaving stocks 6% below the five-year average.

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