FX.co ★ Gasoline Prices Steady

Gasoline futures for delivery in New York Harbor held near $3.30 per gallon, stabilizing after a decline of more than 4% in the previous session, as markets weighed the prospects for peace in the US–Iran conflict. Reports indicated that the US military carried out a self-defense strike in Iran, following President Donald Trump’s push for an interim agreement between Tehran and Washington that would include reopening the Strait of Hormuz. Since the war began in early March, energy markets have been extremely volatile. Disruptions to crude and refined product flows have driven global inventories lower at a record pace, according to the IEA. In the US, gasoline stocks declined for a 14th consecutive week in mid-May, with refineries running near full capacity and drawing on SPR feedstock. At the same time, refiners adjusted output by shifting yields toward distillates in an effort to ease tightening supplies of diesel and jet fuel.