In late May, U.S. gasoline futures dipped below $2.08 per gallon, reaching a three-week low. This decline was largely driven by the abundant crude oil supply available for refineries, which in turn lowered the cost of feedstock. In anticipation of OPEC+ members' early-month meeting, there’s an expected increase in crude oil production by 411,000 barrels per day starting in July. Additionally, a decrease in consumption following the Memorial Day weekend contributed to the reduced futures.
In other developments, a decision by a U.S. Federal Court has invalidated several measures introduced under President Trump's reciprocal tariff package, potentially easing supply concerns for refineries in northern U.S. areas which heavily depend on Canadian crude oil varieties. Concurrently, new data from the EIA indicated an unexpectedly significant drop in U.S. gasoline inventories over the past week.
