Gasoline is up by 5%

Gasoline increased 5% to 3.0258 USD/Gal

US gasoline prices rose more than 3% to $2.98 per gallon, tracking a rebound in crude driven by geopolitical tensions in the Middle East. The maritime group UKMTO reported that a vessel was struck by an unknown projectile in the Strait of Hormuz off the Omani coast, prompting several commercial ships to reverse course. This disruption renewed safety concerns regarding the vital shipping corridor and fueled anxieties over Iran dictating transit while Washington and Tehran negotiate a permanent end to their war. Despite the volatility, Saudi Arabian tankers headed toward the Ras Tanura terminal to resume Persian Gulf exports for the first time since March, and Qatar issued its first post-war crude tender. Domestically, US gasoline inventories rose by 2.064 million barrels to 216.3 million barrels, defying expectations of a draw. However, stockpiles remain 5% below the five-year average. Meanwhile, President Donald Trump ordered a federal investigation into the slow-falling pump prices.

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.