Oil Gains as US Refiners Ramp Up for Summer, Dollar Weakens

Oil prices rose on June 7, 2023, as US refiners ramped up production in preparation for summer demand. According to a report by Bloomberg, a build in US gasoline inventories was likely a consequence of refiners increasing output. The report also noted that crude oil futures had risen following a two-day decline.

The increase in oil prices comes as drivers in the US are facing expensive summer prices at the pump. GasBuddy, which tracks real-time gasoline prices at over 150,000 North American stations, noted that the national average for gasoline reached $5/gal on June 9, with drivers in 17 states paying over that amount.

Despite running over 90% of capacity, US refiners are grappling with high demand, which has led to a tightening of gasoline stockpiles ahead of the summer season. This has put upward pressure on oil prices, which are expected to remain high throughout the summer months.

The weakening of the US dollar has also contributed to the rise in oil prices. As the dollar weakens, oil becomes more expensive for buyers using other currencies, which can lead to an increase in demand for oil and a rise in prices.

Overall, the combination of high demand, tightening gasoline stockpiles, and a weakening dollar has led to an increase in oil prices, which is likely to impact consumers at the pump throughout the summer season.