U.S. gasoline futures have declined to below $2.15 per gallon, marking their lowest point in two weeks. This downturn follows a similar trend in crude oil prices, driven by rising supply levels and increasing concerns about demand. The steep drop in crude oil prices came after an unexpected announcement by eight OPEC+ nations, which revealed a substantial production increase of 411,000 barrels per day for May—far surpassing the initially planned rise of 135,000 barrels daily. This development suggests a more-than-sufficient oil supply.
Adding to the market tension are fears of a potential global trade war sparked by broad new tariffs introduced under Trump’s administration. The tariffs mandate a minimum 10% charge on most imported goods, with higher rates applied to certain countries, although oil, gas, and refined products are not subjected to these duties.
Meanwhile, U.S. crude oil inventories saw a surprising increase of 6.2 million barrels last week, contrary to expectations for a reduction. In contrast, gasoline stocks decreased by 1.6 million barrels, slightly more than projected. Additionally, gasoline demand has tapered to 8.5 million barrels per day.
