Gasoline futures in the US fell more than 4% to about $1.86 per gallon, retreating from a ten-week high of $1.95 reached on January 30, amid easing geopolitical tensions and ample supply. The decline followed losses in crude oil after President Donald Trump said the US is talking with Iran, reducing fears of an immediate supply shock from the Middle East. With no disruption materialising, markets unwound part of the risk premium built during weeks of heightened tensions, which had raised concerns over flows from a region supplying roughly a third of global crude. In addition, US data showed sizable gasoline inventory builds, including a roughly 6 million barrel rise in mid-January, alongside a surprise increase in distillate stocks. Further weighing on sentiment, OPEC+ confirmed plans to keep output steady in March, while longer-term projections point to global supply exceeding demand next year.
