US Gasoline Prices Hit $4.254 Amid Supply Shocks
US gasoline prices rose to $4.254 per gallon as crude oil futures climbed and Red Sea disruptions tightened supply.
The national average retail price of regular gasoline reached $4.254 per gallon. This figure represents a 10.8-cent increase over three weeks. West Texas Intermediate crude oil futures closed at $100.05 per barrel on September 11. This price is up $12.99 from the previous three-week average.
Wholesale costs for regular grade gasoline hit $3.489 per gallon. This marks a 27.6-cent rise in the same period. Retail margins compressed to 13.5 cents per gallon. A 16.8-cent drop in margins leaves retailers with minimal funds to cover operational costs.
Red Sea Disruptions Drive Crude Costs
Houthi rebels in Yemen seized a key island in the Red Sea. This action forced the closure of Saudi Arabia's East-West pipeline. The pipeline moves oil without using the Strait of Hormuz. These events intensified global supply threats and pushed oil prices higher.
Refining Capacity Near Historical Peaks
Refiners' combined utilization rate rose to 97.8 percent. Gasoline stocks continued to shrink during this period. Seasonal adjustments to vapor pressure regulations lowered costs slightly. These savings are negligible against the backdrop of rising crude prices.
Retailers Face Margin Compression
Retailers must pass through higher fuel purchasing costs quickly. Street price competition remains intense as demand shrinks due to high prices. Pump prices may rise by another 20 cents per gallon soon. This trend will further suppress gasoline consumption in the US market.
