The US gasoline’s average price has peaked either in April or May, according to the AAA data. At the beginning of May, gasoline prices appear to have topped out about USD 2.22 per gallon before falling slightly. But, prices have continued to move higher since around mid-May. According to a weighted average of AAA state prices,prices have increased by around 5 percent since mid-May.

Nearly 55 percent of the rise in the national average is mainly because of price increases in the Midwest’s 12 states, said Societe Generale in a research report. The sharp increase in the prices in this region is due to several unplanned refinery outages that resulted in a surge in wholesale prices in the area. But as utilization has started to increase again, prices have reversed path in the region. This should result in gas price stabilization in the region, according to Societe Generale.

Apart from certain stability in supply returning to the Midwest region, other factors also show that supply of gasoline is expected to be plentiful, even in the midst of robust demand in 2016. Currently, the four-week moving average of gasoline inventories is 8.4 percent above 2015’s level and 12.5 percent more than the level seen in 2014.

In days’ supply terms, the current level of 24.9 days of supply is around five percent more than the trailing five-year average for this time of year. Moreover, the four-week average of gasoline production continues to be around 1.7 percent more than the last year and 6.5 percent more than the level of 2014. Refiners are expected to continue producing gasoline for the coming two to three months, noted Societe Generale.

Meanwhile, the latest Baker Hughes also showed that the rig counts rose for two consecutive weeks, first time since August 2015. This implies that the oil prices at around the current levels might result in bringing back certain rigs online. Several risks continue to be there such as unplanned refinery problems, beginning of the hurricane season and geopolitical risks. But according to fundamentals, there will be gasoline in abundance to meet the present demand rate, added Societe Generale.