“Gasoline futures eased to under the $3.4 per gallon mark, on course to close the week sharply lower as concerns of poor demand overcame limited refining capacity in the US and abroad. EIA data showed that gasoline product supplied, the preferred gauge of weekly demand, was more than 5% lower in June than the corresponding period of last year, despite the recent jump ahead of the July 4th weekend. The data adds to worries that demand for energy will decrease as the Federal Reserve is set to continue hiking interest rates after minutes from its last meeting pointed to consensus between policymakers that inflation needs to come down, even if it hampers growth. On the other hand, gasoline inventories decreased more than expected on the week ending July 1, exacerbating fears of tight supply.”

Originally published here by Trading Economics on 8 July 2022.