FX.co ★ Gasoline Rises to 2-Week Highs

In July, U.S. gasoline futures rose to approximately $2.19 per gallon, reaching a two-week high influenced by rising crude oil prices and robust summer travel demand following the July 4th celebrations. Despite concerns over a potential surplus triggered by OPEC+'s higher-than-anticipated production increase of 548,000 barrels per day for August, refiners continued to focus on gasoline production due to attractive profit margins. The International Energy Agency's latest report indicated potential weakening in global demand, while escalating U.S.-China trade tensions posed additional risks, as President Trump announced 35% tariffs on Canadian goods starting August 1st and hinted at 15–20% duties on most other trading partners. On the supply front, unforeseen refinery shutdowns on the U.S. East Coast, coupled with ongoing disruptions in Red Sea shipping, tightened local supply and indirectly bolstered the premiums on refined products.