Gasoline Futures Drift Lower

U.S. gasoline futures slipped below $3.20 per barrel after a two-day gain, as markets continued to assess Middle East developments alongside inventory data. API data showed gasoline stocks fell 5.2 million barrels last week, however, EIA data indicated levels remained 1% above the five-year average. Meanwhile, US–Iran peace talks stalled as President Trump maintained the Strait of Hormuz blockade despite a truce extension.

This followed reports that Vice President JD Vance’s planned trip to Pakistan for Iranian talks was postponed, while Tehran, via a Pakistani intermediary, informed US counterparts it would not attend further talks. Since late February, Persian Gulf crude flows have been curtailed by about 13 million bpd, according to the IEA. Separately, Energy Secretary Chris Wright said the US gasoline price spike appears to have peaked, with prices up 35% over seven weeks. Elsewhere, Russia has resumed Urals exports from key western ports after weeks of drone disruptions.