Key Takeaways
Gasoline futures on the New York Mercantile Exchange jumped 4.3 percent after the U.S. Energy Information Administration reported a larger-than-anticipated decrease in domestic gasoline and distillate inventories for the week.
The EIA's weekly petroleum status report is the primary driver for the price movement, signaling tighter supply conditions than analysts had forecast. "Ongoing disagreements have reduced the likelihood of a near-term breakthrough, keeping markets focused on the risk of prolonged supply disruptions," said Maria Agustina Patti, a financial markets consultant to Exness, commenting on the broader energy market.
NYMEX RBOB gasoline futures for June delivery rose to $3.5761 a gallon, a 4.34 percent increase, while heating oil futures climbed 4.71 percent to $4.0761, according to Nymex data. The move comes as crude prices also pushed higher, with the front-month West Texas Intermediate contract trading up over 3 percent to $99.29 a barrel amid pessimism over a potential U.S.-Iran peace deal.
The surprise inventory draw suggests consumer demand is holding up more strongly than expected, which could support higher fuel prices heading into the summer driving season. Traders will now look to next week's EIA report for confirmation of the trend. Supply concerns have also been heightened by regional refinery issues, including a recent brief power-related disruption at BP's 440,000 barrel-per-day Whiting Refinery in Indiana.
This article is for informational purposes only and does not constitute investment advice.
