FX.co ★ US Gasoline Futures Fall to Over 3-Week Low

Gasoline futures in the United States have dipped below $1.99 per gallon, the lowest point in over three weeks, as global supply continues to increase amidst ongoing demand concerns. The OPEC+ alliance, spearheaded by Saudi Arabia, has decided to boost production by an additional 411,000 barrels per day in June, mirroring a similar increase implemented in May. This results in an augmentation of over 800,000 barrels per day within a two-month timeframe. Typically, gasoline prices rise during the spring due to increased travel associated with warmer weather. However, crude oil prices have experienced a significant decline, reflecting their poorest monthly performance since 2021 in the month of April. Concerns about a potential recession, partly fueled by tariffs imposed during President Trump's tenure, have contributed to a pessimistic market outlook. Despite these factors, U.S. gasoline inventories are on a downward trend. Recent data from the Energy Information Administration (EIA) indicates a 4 million barrel reduction in the last week of April, following a similar decrease the preceding week. This represents the ninth consecutive week of inventory declines, marking the longest streak of such reductions since June 2022.