Octane Component Squeeze

Despite the drop in base gasoline prices, high-purity blending components like toluene and benzene remain expensive. This is keeping a floor under gasoline that is higher than the historical correlation with crude oil would suggest.

Inventory Draws Continue

EIA data shows a continuing draw in gasoline stocks. While wholesale prices are falling on the peace news, the structural tightness of the US refining system will likely prevent a total collapse in fuel costs.