Gasoline glut, weak demand, to pressure prices

NEW YORK (Reuters) – U.S. gasoline prices have probably peaked for 2009 and could face increasing downward pressure as seasonally higher summer driving demand fades into the rear-view mirror.

Motor fuel inventories have climbed for six straight weeks, gaining even around the Fourth of July holiday, traditionally the peak of demand in the United States.

“This year is unusual because inventories are high and gasoline demand is very poor. So far we haven’t seen much of a driving season,” said Antoine Halff, vice president of research at Newedge Group, who expects prices to fall.

Halff and other analysts say demand has peaked. Any gains in August would be a surprise that could lead to some stock draws, but shouldn’t set off alarms that supplies are dwindling dramatically.

Reuters