Crude oil prices retreated to a three-week low amid diplomatic optimism regarding the Strait of Hormuz, while gasoline prices climbed on record-high refining margins.
WTI crude fell to a 3-week low on diplomatic hopes and increased flows through the Strait of Hormuz.
RBOB gasoline rose as the crude crack spread hit a record high, encouraging refining demand.
The dollar index rallied to a 7-week high, pressuring energy prices.
Saudi Aramco delayed deliveries due to pipeline closure but may restart exports from Yanbu soon.
WTI crude oil prices fell 1.24% to a three-week low on Tuesday, pressured by a stronger dollar and reports of increased oil flows through the Strait of Hormuz. While crude struggled, RBOB gasoline prices rallied 0.51% as the crude crack spread reached a record high, incentivizing refiners to boost production.
Crude prices declined due to reports of increased tanker traffic through the Strait of Hormuz and diplomatic progress between the US and Iran, which eased supply concerns.
Gasoline prices are rising because the crude crack spread—the difference between the price of crude oil and the price of refined products—has hit a record high, making it highly profitable for refiners to process gasoline.