26.06.202516:46:07UTC+00Gasoline Rebounds on Tight Supply

Gasoline futures in the U.S. have recovered to approximately $2.11 per gallon, following a dip below $2.10 due to the recently brokered ceasefire between Israel and Iran by the United States. This development has mitigated concerns about potential disruptions in the Strait of Hormuz. According to the most recent data from the Energy Information Administration (EIA), there has been a notable drawdown of 2.075 million barrels in U.S. gasoline inventories for the week ending June 20th—marking the most significant decrease since last November. Meanwhile, refinery output has decreased, further constricting supply. Concurrently, U.S. crude oil stockpiles have declined by 5.84 million barrels, increasing feedstock costs. Although the ceasefire is currently in effect, intermittent tensions and Iran's threat to suspend its cooperation with the UN nuclear watchdog continue to prevent prices from falling. Additionally, a weakening dollar, fueled by rising expectations of a Federal Reserve rate cut, has supported gasoline prices by making refined products more competitively priced in the global market.