FX.co ★ Gasoline Futures Fall from 5-Month High

US gasoline futures slipped below $2 per gallon, retreating from the five-month high of $2.01 reached on February 19. The pullback came as traders monitored developments in nuclear talks between the US and Iran, with a third round scheduled for Thursday in Geneva, according to Oman’s Foreign Minister Badr Albusaidi. Donald Trump said he prefers a diplomatic resolution but warned of consequences if no agreement is reached, keeping markets on edge given the Strait of Hormuz’s importance as a transit corridor for nearly one-third of global tanker traffic. At the same time, Ukrainian strikes on Russian refineries have pushed Russian companies to export more crude instead of gasoline. On the supply side, the EIA’s weekly report showed a 3.2 million barrel draw in US gasoline inventories for the second week of February, far exceeding expectations for a 300 thousand barrel decline.