Energy prices finding support to start September
September 2, 2025
Energy prices were down slightly in last Friday’s trading driven mainly by uncertainty around tariffs and OPEC+ bringing additional barrels to market starting in September and the US driving season coming to an official end after this past holiday weekend. On the bullish side gasoline and diesel fuel demand have been stronger than expected along with US oil production growth slowing and inventories falling and staying on the lower end of the average range according to the EIA.
Energy prices have jumped higher here to start out this new week and new month. It appears traders are buying after a long holiday weekend. News that an appeals court ruled many of President Trump’s tariffs are not lawful has also created some buying on the idea that rolling back tariffs will benefit energy demand. The court is allowing the tariffs to stay in place to allow time for an appeal against the ruling to the Supreme Court.
Crude is also getting support from news that Iraq and Saudi Arabia are refusing to ship oil to one of Indian refinery due to sanctions by Europe. The Nayara Energy refinery is 49.13% owned by Russia’s Roseneft and only process Russian crude. The throughput at the refinery is expected to decline because of these sanctions.
Crude oil inventories decreased by 2.4 million barrels week-over- week and are now 6% below the five-year average. Gasoline inventories decrease 1.2-million-barrel week over week and are just at the five-year average. Distillates decreased by 1.8 million barrels and are 15% below the five-year average. Propane inventories increased by 1.7 million barrels and are 13% above the five-year average.