Energy market is mixed as US-Iran tensions rise
September 3, 2026
The weekly DOE inventory report had crude oil supplies down 4.45 million barrels, the average estimate was down 368,000. Gasoline supplies went down 1.17 million barrels, and the average estimate was a draw of 1.780. Distillate supplies went up 800,000 barrels and the average estimate was down 780,000.
Propane supplies had a surprises decline of 2.072 million barrels, but total supplies are still at over 107 million in good shape and the fundamentals of propane are still bearish. Total US propane stocks are 107.411 million and last year they were 96.128 million, and the five-year rolling average is 87.298 million.
Midwest barrels were down 468,000 with total stocks now at 26.176 million and last year they were 24.087 and the five-year average is 24.807.
Gulf Coast inventories were down 1.426 to a total of 68.182 million and last year they were 56.614 million, and the five-year rolling average is 49.056.
From John Kemp of John Kemp Energy. US fuel prices have risen sharply since the start of the year as simultaneous wars with Iran and between Russia and Ukraine have disrupted the global refining system. Retail gasoline prices (including taxes) are up by more than 40% compared with January while diesel prices have risen by more than 50%. In real terms, gasoline and diesel prices are now well above the long-term average having started the year significantly below it.
Total crude oil supplies 424.460, last year 420.707, and the three-year average 418.551.
Total gasoline supplies 205.669, last year 218.539, and the three-year average 217.5098.
Total distillate supplies 104.187, last year 115.923, and the three-year average 119.080.
The diesel crack spread is very high, and refineries are running hard to capture those profits. Gulf Coast refinery utilization was up to 97.7% of capacity.
The energy market is mixed this morning with no new market moving headlines, but the US and Iran war continues, and tension have been elevated the last few days.