US gasoline futures slipped to $3.12 per gallon, breaking a five-session rally, after Tuesday’s meeting between President Trump, Energy Secretary Wright, and US refiners. The talks centered on fuel-blending mandates, which refiners contend are driving up fuel costs as corn and soybean prices climb to nearly three-year highs amid adverse weather. Trump also pressed refiners to expand capacity by building additional refineries.
At the same time, the potential for increased Venezuelan crude supplies offers limited relief, as US refineries are already running close to full capacity, with several operators postponing maintenance to sustain elevated output. Crude shipments through the Strait of Hormuz have likewise continued despite rising geopolitical tensions.
Even so, gasoline crack spreads remain near multi-year highs, underpinned by robust demand heading into the Labor Day holiday, when driving activity typically spikes. Meanwhile, Ukrainian attacks on Russian refining assets have pushed Russian refinery runs to multi-year lows, further tightening global product supplies and supporting prices.