Commodities Focus: Cruel summer: US gasoline prices to break above $6

Natasha Kaneva is joined by Ted Hall to discuss gasoline market dynamics. The national average US retail gasoline price topped $4.50 a gallon this week for the first time. With expectations of strong driving demand—traditionally, the US summer driving season starts on Memorial Day, which lands this year on May 30, and lasts until Labor Day in early September. Typically, refiners produce more gasoline ahead of the summer road-trip season, building up inventories. But this year, since mid-April, US gasoline inventories have fallen counter seasonally and sit at the lowest seasonal levels since 2019. A major driver in these counter-seasonal draws in gasoline is higher-than-normal exports that are unlikely to persist at current prices.

Speakers

Natasha Kaneva, Head of Global Oil and Commodities Research

Ted Hall, Vice President of Global Oil Research

 

This podcast was recorded on May 20, 2022.

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