02.02.202610:00:27UTC+00Gasoline Futures Drop from 10-Week High

Gasoline futures in the United States have declined by over 4% to approximately $1.86 per gallon, dropping from their ten-week peak of $1.95 recorded on January 30. This shift is attributed to diminishing geopolitical tensions and a robust supply. The fall in prices followed a decrease in crude oil values after President Donald Trump announced discussions with Iran, alleviating concerns of an immediate supply disruption from the Middle East. In the absence of any interruptions, markets have partially reversed the risk premium that had been integrated during periods of heightened tensions when apprehensions about the region's capacity to supply roughly one-third of the world's crude oil prevailed. Additionally, domestic reports indicated significant increases in gasoline inventories, including a substantial growth of about 6 million barrels in mid-January, along with an unexpected rise in distillate stocks. Adding to the subdued sentiment, OPEC+ confirmed plans to maintain steady production levels through March, with longer-term forecasts suggesting that global supply will surpass demand in the coming year.