Gasoline prices in the United States have decreased to $1.94 per gallon, marking their lowest point over a week. This decline is largely due to an unexpected increase in gasoline supplies.
According to the Energy Information Administration (EIA), gasoline inventories grew by 3.3 million barrels last week, reaching 212.2 million barrels. This was surprising because experts had anticipated a small decrease of about 46,000 barrels.
Oil Prices Fall as Gasoline Stocks Rise
The higher-than-expected gasoline stocks are putting pressure on the gasoline market, especially since oil prices are also falling. The oil markets are reacting to a recent ceasefire between Israel and Hezbollah, which was facilitated by the United States and France and began on Wednesday.
All eyes are now on the upcoming OPEC+ meeting scheduled for Sunday. Reports suggest that the group, which includes major oil-producing countries, might decide to delay their planned increase in oil production. They are considering this move to prevent an oversupply of oil in the market, which could push prices down even further.