Gasoline Market Diverge: U.S. Faces Tight Supply, Saudi Signals Price Hike, India Steadies with Festive Demand

In early September ****, the gasoline prices in the U.S., Saudi Arabia, and India captured a snapshot of the interplay of global oil dynamics, local supply situations, and seasonal shifts. The movements from August continued, as crude price movement, refinery activity and geopolitical situation had each shaped the outcome in each of the markets.

In the U.S., prices for gasoline fell in August to USD *.** per gallon, the lowest level in four years for a summer price, due to falling Brent crude prices and the transition to winter-grade gasoline. There was weaker demand than normal in August due to extreme heat, growing electric vehicle sales, and remote work occurring through Labor Day. However, after Labor Day in September, U.S. gasoline prices rebounded sharply to over USD * per gallon in futures prices, driven by rising crude benchmarks, tighter refining capacity, and geopolitical concerns. An unexpected *.**-million-barrel...