FX.co ★ Gasoline Drops to 1-Month Low

US gasoline futures traded near $3.15 per gallon in late May, the lowest level in over a month, amid expectations of easing supply pressures following reports that Iran and the United States had agreed to a truce in their conflict. According to those reports, a 60‑day memorandum would extend the current ceasefire and allow crude oil and refined product exports through the Strait of Hormuz to resume within a month of the deal. Energy exports from this key region have been effectively halted since the first week of March, driving global oil inventories to decline at a record pace, according to the IEA. In parallel, US gasoline stocks fell for a 15th straight week in May, as refineries operated at full capacity using feedstock from the Strategic Petroleum Reserve. Capacity dedicated to motor gasoline was also reduced, with refiners shifting toward distillate production in an effort to avert shortages of diesel and jet fuel.