Gasoline Futures Hit 4-Week Low

Gasoline futures for delivery in New York Harbor shed more than 4% to around $3.30 per gallon, the lowest in over four weeks, as optimism over US and Iran reaching a deal eased concerns about deeper disruptions to global energy supplies.

President Trump said talks with Iran were progressing constructively, though he stressed that the US would not rush a deal.

He added that the reopening of the Strait of Hormuz was largely agreed and could be announced soon, but the US blockade would remain in place until negotiations are finalized.

Energy exports from the region have been largely halted since early March, driving global oil inventories down at a record pace, according to the IEA.

Meanwhile, US gasoline inventories fell for a 14th straight week in mid-May as refineries ran near full capacity using SPR feedstock.

Output was also curtailed as refiners shifted production toward distillates to help prevent diesel and jet fuel shortages.