FX.co ★ Gasoline Drops from 1-Month High

U.S. gasoline futures have dipped to just under $2.18 per gallon, marking a decrease from the previous high of $2.22 reached at the end of July. This decline is largely attributed to reduced crude feedstock costs, growing inventories, and indications of diminishing demand—which have collectively exerted downward pressure on the market. The retreat in crude oil prices follows the unexpected increase of 7.7 million barrels in U.S. crude stocks for the week ending July 25th, driven by lower exports and against predictions of a drawdown. Although gasoline inventories decreased by 2.7 million barrels—the most significant drop since early July, suggesting robust seasonal demand— the surplus in crude oil has resulted in lower feedstock costs, tightening refining margins. Consequently, refiners have scaled back throughput, leading to a further easing of crude demand.