US gasoline futures hit $3.35 as Middle East tensions threaten fuel supply

  • US gasoline futures rose as Middle East tensions reduced the outlook for refined fuel supply.
  • 1.269 million barrels were added to US gasoline inventories in the week ended September 4.
  • Saudi Arabia reported August crude output at its lowest level since 1990.

US gasoline futures climbed to around $3.35 a gallon, their highest level since late July, as continuing Middle East tensions clouded the outlook for refined fuel supply. Tehran said it would continue counterstrikes if attacks by the US military persist. Saudi Arabia reported that its crude oil output in August fell to its lowest level since 1990, while the conflict disrupted its export routes. Saudi and Yemeni officials said the Houthis were nearing complete control of the Bab al-Mandeb Strait, and persistent Ukrainian strikes continued to pressure Russia's energy infrastructure. US gasoline inventories increased by 1.269 million barrels in the week ended September 4, according to EIA data, even as production declined and refineries operated near full capacity. AAA said the average national price for regular gasoline rose to $4.28 a gallon on September 10.

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