FX.co ★ Gasoline Holds Near 2-Month High

US gasoline futures climbed above $3.30 per gallon, hovering near their highest level since late May amid mounting concerns over global refined fuel supplies. The breakdown of the US–Iran truce and renewed tanker attacks in the Strait of Hormuz have intensified fears of disruptions to fuel shipments from the Persian Gulf. At the same time, continued Ukrainian strikes on Russia’s energy infrastructure are constraining operations at major refineries.

Refining trends have further tightened gasoline supplies. Both US and international refiners have scaled back gasoline production in favor of higher-margin diesel and jet fuel, while robust overseas demand has driven US fuel exports to record levels. According to EIA data, US gasoline inventories fell by 1.5 million barrels in the week ending July 10, leaving stocks roughly 14 million barrels below their five-year seasonal average and at their lowest level for this time of year since 2012. Reflecting this tightness, the US gasoline crack spread has widened to about $59 per barrel, its highest since June 2022.