17.06.202614:56:46UTC+00Gasoline Holds Near 3-Month Low

Gasoline futures for delivery in New York Harbor traded below $2.90 per gallon in June, hovering at three-month lows and giving back most of the gains triggered by the Iran war, as markets priced in the prospect of higher oil supply from the Middle East. The US and Iran reaffirmed their intention to sign an agreement on June 19th to restore oil and refined fuel exports from GCC countries, flows that have been largely shut down since March.

The additional supply is expected to replenish refineries worldwide, supported by higher OPEC+ export quotas and increased production from the UAE, which exited the cartel during the conflict. In the US, gasoline inventories fell by 1 million barrels in the week ending June 12th, while the Strategic Petroleum Reserve dropped to a 43-year low.

The agreement is also set to ease US sanctions on Iran, boosting exports from the major producer. Additional Iranian crude is likely to rebuild China’s oil inventories, which have been drawn down in recent months as the world’s largest importer held back on purchases to avoid driving prices even higher.