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US Gasoline Inventories Face Record Summer Lows

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U.S. gasoline inventories are on pace to drop to historical seasonal lows by late summer, further straining a tight fuel market upended by the war in Iran.

Stockpiles are expected to fall below 200 million barrels by the end of August, Morgan Stanley analysts wrote in a May 4 note. The projections for record seasonal low fuel inventories are the latest indication that the global energy supply crunch appears set to continue for months to come.

“The U.S. gasoline market is genuinely tight and tightening further into summer,” Morgan Stanley analyst Martijn Rats and strategists Charlotte Firkins and Amy Gower wrote.

Total gasoline inventories stood at 222 million barrels as of late April — the lowest for that time of year since 2014, according to the Energy Information Administration. 

In Morgan Stanley’s base case projection, in which current market trends “partially normalize,” inventories will fall to 198 million barrels by the end of August. That’s less than levels for the period at any time in modern data, according to the note. The decrease would push total gasoline stockpiles to the lowest at any time since October 2012, according to the EIA.

Inventory levels trending that low would widen the margin between gasoline futures and Brent crude futures — a price difference known as the gasoline crack spread — to $40 a barrel in July, according to the note.

Gasoline inventories in the U.S. have been lower before. But seasonal lows in gasoline supplies during the summer — when demand typically picks up as Americans hit the road — could raise prices at a time when consumers are already grappling with higher fuel costs. On average, U.S. drivers paid $4.48 a gallon at the pump as of May 4, according to the American Automobile Association.

Falling U.S. stockpiles are likely the result of a “collapse” in gasoline imports into the East Coast as the global market scrambles to secure fuel, Morgan Stanley said.

“The traditional resupply mechanism from Europe and the Middle East has effectively stopped,” the analysts wrote. “Saudi, Malaysian and large ARA cargoes are absent.”

Meanwhile, high margins for diesel and jet fuel — supplies of which are running shorter as a result of the effective closure of the Strait of Hormuz — are incentivizing refiners to produce more of those fuels instead of gasoline. U.S. gasoline exports have also remained elevated as foreign buyers snap up barrels that might otherwise be delivered to domestic markets. And U.S. demand for gasoline remains “resilient,” according to the note.

In the most extreme case, in which supply constraints continue an additional one or two months, stockpiles could fall as low as 190 million barrels by the end of August, according to the note. That would send the margin for gasoline against Brent crude in July near $45 to $50 a barrel.

Still, a full reopening of the strait would bring stockpiles closer to normal ranges — and imports could recover regardless as it becomes more profitable to send gasoline from Europe to the East Coast.

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A driver refuels a vehicle at a gas station in Austin, Texas. (Kaylee Greenlee/Bloomberg)

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Trump Prioritizes Trade Over Iran in Talks with Xi Jinping

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Presidents Donald Trump and Xi Jinping shake hands as they leave after their talks in Busan, South Korea, in the fall. (Andrew Harnik/Getty Images)

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President Donald Trump said he would prioritize trade discussions during his summit with Chinese counterpart Xi Jinping and downplayed the amount of attention they would devote to the Iran war.

“We have a lot of things to discuss. I wouldn’t say Iran is one of them, to be honest with you, because we have Iran very much under control,” he added. “We’re either going to make a deal, or they’re going to be decimated one way or the other.”

Trump is eager to secure business deals and hammer out details of a new board of trade to manage ties between the world’s two largest economies when he meets Xi, even as the Iran war has cast a shadow over the summit. The two sides are expected to discuss an extension of the trade truce they reached last fall.

China is a major purchaser of Iranian oil and has called for a swift reopening of the Strait of Hormuz, which remains effectively shuttered as the U.S. blockades Iran’s ports and Tehran restricts the flow of other international traffic. The war has triggered a global energy crisis with world fuel reserves being drawn down.

Trump is under pressure to end the war and said previously he would press Xi over Beijing’s approach to Iran. But on May 12 he touted his relationship with Xi.

“My relationship with President Xi is a fantastic one. We’ve always gotten along, and we’re doing very well with China, and working with China has been very good, so we look forward to it,” Trump said.

Trump to Appeal Ruling Against Tariffs Markets on Edge as China, US Hold Second Day of Trade Talks California EV Incentives Stall as Federal Credit Nears End

Trump to Appeal Ruling Against Tariffs Markets on Edge as China, US Hold Second Day of Trade Talks California EV Incentives Stall as Federal Credit Nears End

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Trump to Appeal Ruling Against Tariffs Markets on Edge as China, US Hold Second Day of Trade Talks California EV Incentives Stall as Federal Credit Nears End

Trump to Appeal Ruling Against Tariffs Markets on Edge as China, US Hold Second Day of Trade Talks California EV Incentives Stall as Federal Credit Nears End

Trump to Appeal Ruling Against Tariffs Markets on Edge as China, US Hold Second Day of Trade Talks California EV Incentives Stall as Federal Credit Nears End

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Waymo Issues Robotaxi Recall After San Antonio Flood Incident

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Waymo is recalling thousands of robotaxis to fix a software issue that could cause the autonomous vehicles to drive on flooded roads.

The recall affects 3,791 vehicles equipped with the company’s fifth- and sixth-generation automated-driving system, according to documents posted to the National Highway Traffic Safety Administration’s website. The Alphabet Inc.-owned robotaxi business is working on a final remedy to address the problem, the agency said.

Waymo said in a statement that it has placed constraints on the system to limit access to higher-speed roadways where flash flooding might occur. 

“We are working to implement additional software safeguards and have put mitigations in place, including refining our extreme weather operations during periods of intense rain,” the company said. 

The decision stems from an April 20 incident in San Antonio, where an unoccupied Waymo robotaxi encountered “an untraversable flooded section of a roadway,” according to the documents. Rather than avoid the potentially dangerous street, the vehicle proceeded into floodwater at a reduced speed. 

Waymo temporarily suspended robotaxi operations in the city after the incident. The company said it has resumed autonomous operations there but has not yet restarted rides for customers. 

Although no one was injured and the recall is relatively small, the incident highlights the challenges for driverless vehicles to adapt to unpredictable weather and other unexpected roadway conditions without a human driver’s judgment. Waymo has been rolling out its robotaxi service in cities across the U.S. in a growing competition with the likes of Tesla Inc.

NHTSA has two separate investigations into Waymo’s self-driving vehicles. One is probing an incident in which a robotaxi struck a child near a school in Santa Monica, Calif., in January, while the other was opened after the company’s cars repeatedly failed to fully slow or stop for school buses last year.

Uber Partners With Zoox to Offer Robotaxi Rides Uber Will Spend $100M to Build Robotaxi Charging Stations Waymo Launches Miami Robotaxi Service, Testing at Airport

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Waymo Issues Robotaxi Recall After San Antonio Flood Incident

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⚠️ Recall Alert Waymo 5th and 6th Generation Automated Driving Systems (ADS). Recalled because ADS software may allow vehicle to drive onto a flooded roadway. https://t.co/LdZVajvUNY — NHTSA Recalls & Ratings (@NHTSArecalls) May 12, 2026

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A Waymo autonomous taxi in Mountain View, Calif. (David Paul Morris/Bloomberg)

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Uber Partners With Zoox to Offer Robotaxi Rides Uber Will Spend $100M to Build Robotaxi Charging Stations Waymo Launches Miami Robotaxi Service, Testing at Airport

Uber Partners With Zoox to Offer Robotaxi Rides Uber Will Spend $100M to Build Robotaxi Charging Stations Waymo Launches Miami Robotaxi Service, Testing at Airport

Uber Partners With Zoox to Offer Robotaxi Rides Uber Will Spend $100M to Build Robotaxi Charging Stations Waymo Launches Miami Robotaxi Service, Testing at Airport

Uber Will Spend $100M to Build Robotaxi Charging Stations

Uber Will Spend $100M to Build Robotaxi Charging Stations

Waymo Launches Miami Robotaxi Service, Testing at Airport

Waymo Launches Miami Robotaxi Service, Testing at Airport

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The Trump administration is in the process of issuing more than $35.5 billion to importers who successfully filed for tariff refunds after the Supreme Court found the president’s signature economic policy unlawful, according to a new court filing.

The payments are being processed through a new online government portal and will include interest on duties paid across more than 8 million import entries, said Brandon Lord, executive director of trade programs for the Customs and Border Protection’s Office of Trade.

The scramble for refunds started immediately after the Supreme Court ruled Feb. 20 that President Donald Trump unlawfully used the International Emergency Economic Powers Act to impose tariffs on goods entering the country. The court’s 6-3 decision didn’t address the question of refunds, leaving it to the lower courts to hash out.

So far, more than 8.3 million of the accepted entries have been reprocessed to remove IEEPA duties. The court filing also said 1,880 consolidated refunds have not yet been sent to Treasury because the importer had not yet provided bank account information.  

CBP had said in earlier court filings that the first phase won’t be able to accept claims for more than a third of the import entries at issue. The remaining entries have more complicated circumstances, and Customs officials haven’t specified a schedule for rolling out future phases of the refund program. 

Payments for some of the first refund requests started reaching importers early last week, earlier than expected.

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Cranes and shipping containers at the Port of Long Beach in California. (Kyle Grillot/Bloomberg)

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Colorado Leads 16 States Suing FHWA to Recoup $1B in EV Grants CK Hutchison Seeks Chinese Investor on Panama Ports Deal CN Railway Defies Tariffs Gloom, Keeps 2025 Growth Outlook

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