FX.co ★ Gasoline Drops Toward 7-Week Lows

U.S. gasoline futures have fallen to below $2.05 per gallon, nearing the seven-week low of $2.01 recorded on May 30th. This decline comes as the market digests a larger-than-anticipated increase in gasoline supply amidst evolving trade tensions. According to the latest data from the Energy Information Administration (EIA), gasoline inventories expanded by 5.2 million barrels for the week ending May 30th, which significantly surpassed analysts' expectations. Additionally, OPEC+ has confirmed a third consecutive monthly output increase of 411,000 barrels per day (bpd) for July, alleviating concerns of a larger boost in production. Market participants are also closely monitoring the discussions between President Trump and President Xi Jinping, looking for any indications of changes in trade relations. Despite continued strong refinery operations, supply risks remain high as hurricane season begins. The National Oceanic and Atmospheric Administration (NOAA) forecasts a 60 percent likelihood of an above-normal Atlantic season, and potential storms along the Gulf Coast could disrupt refining operations and supply chains, potentially driving prices up.