US Gasoline Supplies on Way to Seasonal Low, Morgan Stanley Says

A driver refuels a vehicle at a gas station in Austin, Texas.

Photographer: Kaylee Greenlee/Bloomberg

US 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 Monday 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.