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GasolineMarkets

Gasoline Prices Approach 4-Year High

Gasoline futures in the US extended gains above $3.70 per gallon, approaching the four-year high reached in early May, driven by fears of a prolonged energy supply crunch in the Middle East. US President Donald Trump maintained an increasingly hardline stance toward Tehran as negotiations between the US and Iran remained deadlocked, leaving the Strait of Hormuz largely closed. Concerns also intensified after reports that energy facilities in the Persian Gulf were targeted over the weekend. Energy exports from the key region have remained heavily disrupted since early March, causing global oil inventories to decline at a record pace, according to the IEA. Meanwhile, US gasoline stockpiles fell for a 13th consecutive week in early May despite a slight increase in production, as refineries continued operating near full capacity using feedstock supplied from the SPR.

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