Gasoline Falls to Over 3-Month Low

US gasoline prices extended their decline toward $2.80 per gallon in late June, revisiting their lowest level since March, amid signs that oil exports from the Middle East were resuming. Tanker tracking data showed crude carriers moving through the Strait of Hormuz again after diplomatic progress and a preliminary agreement between the US and Iran encouraged both sides to ease restrictions. At the same time, the US continued moving toward lifting sanctions on Iran, a step that could bring additional oil supplies to international markets and Western refiners. Meanwhile, gasoline inventories rose by 2.064 million barrels to 216.3 million barrels in the week ending June 19, compared with expectations for a 0.6 million-barrel draw. However, stocks remained 5% below the five-year average, indicating that supplies were still relatively tight by historical standards. For the month, gasoline prices are on track to post a second consecutive decline.