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U.S. Gasoline Markets Point to Bad News for Biden This Summer

  • Forward curve points to a tight summer market for gasoline
  • Biden administration has been trying to combat high fuel costs
     

     

Photographer: Luke Sharrett/Bloomberg

The gasoline market is painting a picture of tight supplies this summer -- the last thing Joe Biden will want to see as he tries to contain high fuel prices.

On the New York Mercantile Exchange, futures contracts for gasoline are in an increasingly bullish structure called backwardation. They show that those who trade the fuel expect a summer of relatively weak supply and strong demand. And that doesn’t bode well for a U.S. president who’s trying to keep fuel costs low.