Overview
- The White House met with major refiners on Tuesday to demand higher output and lower pump prices as Brent crude traded in the low-to-mid $90s per barrel.
- GasBuddy projects the national Labor Day average will hit about $4.03 per gallon, making the holiday the most expensive on record in nominal terms.
- The administration has tapped short-term levers including Strategic Petroleum Reserve releases, temporary Jones Act changes, biofuel rule adjustments, and a deal to access Venezuelan reserves.
- U.S. refineries are running near full capacity at roughly 97 percent operable use and refining margins and diesel crack spreads have surged to record or near-record levels, limiting how fast refined fuel supply can rise.
- With weekly API and EIA inventory reports watched closely and continued U.S.-Iran strikes threatening the Strait of Hormuz, officials say immediate, sustained relief at the pump is unlikely and higher diesel costs could squeeze trucking, farming and heating bills before the midterms.