LONDON: US gasoline prices and refining margins have come under pressure as inventories deplete more slowly than normal for this time of year, indicating supplies are plentiful, and undermining the bullish case for the fuel.

Just over a month ago, investors had amassed one of the largest bullish positions in US gasoline futures and options since before the pandemic, anticipating that prices would continue climbing.

Gasoline had become the most attractive part of the petroleum complex for investors to bet prices would rise further in the run-up to US presidential and congressional elections in November.

Their bullishness was underpinned by relatively low inventories, employment growth, strong increases in household incomes and the prospect of an active hurricane season.

Ukraine’s drone attacks on refineries in Russia threatened to tighten international supplies even further, prompting the Biden administration to warn Ukraine’s government to change its targeting.