Gasoline increased to a 7-1/2-year high of 2.76 USD/Gal as traders continued to monitor Iran’s nuclear talks against an increasingly tight global oil market. Demand is running hotter than models had forecasted, and the previously expected market surplus in the first quarter of the year now seems more distant. Despite President Biden’s Strategic Petroleum Reserve release, crude oil stockpiles have stayed on a downward trend as oil-producing countries failed to meet OPEC+ output targets. Still, the resumption of the negotiations with Iran could mean the return of Iranian oil to international markets, easing some of the momenta in oil and gasoline futures.
The price may look low to folks buying for the family car. The price per gallon quoted in the graph is for gasoline purchased in 1000 barrel lots. Some markets, right now, require a minimum purchase of 25,000 barrels.