US gasoline futures rise above $3.45 as Middle East supply tightens

  • US gasoline futures rose above $3.45 a gallon amid tighter Middle East supply expectations.
  • The contract reached an eight-week high as the crack spread exceeded $60.
  • Iran-backed Houthi rebels shut a Saudi pipeline bypassing the Strait of Hormuz last week.

US gasoline futures climbed above $3.45 a gallon to an eight-week high as concerns over Middle East energy supplies intensified. Attacks last week by Iran-backed Houthi rebels shut a crucial Saudi crude pipeline that bypasses the Strait of Hormuz, which remains under blockade. Since the start of the US-Iran war, the crack spread (the gap between refined-product prices and crude costs) has risen from the teens to above $60, showing demand for refined products outpacing refiners’ production capacity. Refiners are operating near full capacity, while postponed non-essential work has added to a maintenance backlog ahead of seasonal fall maintenance, increasing the ongoing risk to refined-product supplies. UK authorities fear the pipeline could remain closed for as long as six weeks, while US Energy Secretary Wright told reporters it would reopen very soon.

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