Although gasoline demand has started to slow down the end of the summer driving season, US gasoline prices are bucking the trend and sitting at their highest for this season since 2014, due to the oil price rally over the past weeks.
US President Donald Trump has criticised the Organisation of Petroleum Exporting Countries (OPEC) and its members for taking undue advantage of oil consuming nations by keeping oil prices high.
The price of Brent crude oil could continue its advance as traders ignore US President Donald Trump's persistent calls for producers to raise their output.
"It's hard to believe that the Saudis won't answer the call at some point, especially if prices tick much higher", said John Kilduff, a partner at Again Capital in NY.
Speaking at the UN General Assembly on Tuesday, Trump accused OPEC of "ripping off the rest of the world" by pushing for higher oil prices.
Trump administration officials are reassuring the world that there will be adequate supply.
Washington plans to target the country's oil exports from the 4th of November and has already made financial penalties against Iran.
U.S. Energy Secretary Rick Perry speaks during joint press conference on September 18 in Bucharest, Romania.
Oil prices rose to their highest since 2014 above US$80 per barrel this week on fears that a steep decline in Iranian oil exports because of new USA sanctions will deepen an oil deficit, along with production declines in Venezuela.
OPEC leader Saudi Arabia and its biggest oil-producer ally, Russia, on Sunday rebuffed a demand from Trump for moves to cool the market.
The so-called "OPEC+" group, which includes producers such as Saudi Arabia and Russian Federation, met over the weekend but did not see the need to add new output.
Another added: "There are more demand threats next year compared to supply threats".
"Assuming a complete cessation of imports of Iranian crude and $3 per barrel negative impact on earnings because of that, on the barrels being substituted, we estimate total decline in earnings for Indian refiners to be $400-500 million, against combined EBITDA of about $10 billion for the 3 largest state-owned Indian refiners in 2017-18", it said.
Crude prices have also been affected by unexpected disruptions in several countries, including Libya, Nigeria and Venezuela. "Given the current oil market scenario, we believe prices of crude oil are to rise around $78/bbl -$80/bbl unless the number of rigs deployed by the by the United States are increased", said credit ratings agency CARE Ratings.