Gasoline Drops to Seven-Week Low
US gasoline futures fell to around $3.10 per gallon, reaching their lowest level in seven weeks, following unconfirmed reports of a proposal to revive talks between Iran and the US. The US Energy Department also said it was working with US refiners to explore ways to boost fuel output and ease prices. President Trump’s decision to waive key sanctions and tariffs on Russia could ease restrictions on Russian energy trade. However, analysts remain skeptical about the impact of additional Russian diesel supplies on global markets, with Morgan Stanley estimating that Russia’s diesel deal would provide just 12 hours’ worth of supply. Meanwhile, US gasoline inventories showed signs of recovery, with EIA data showing that stockpiles rose by 3.5 million barrels in the week ended October 9th, marking a second consecutive weekly build. However, persistent supply risks in the Middle East continued to limit the downside, as attacks on tankers threatened shipping through the Persian Gulf.
US gasoline futures fell to around $3.10 per gallon, reaching their lowest level in seven weeks, following unconfirmed reports of a proposal to revive talks between Iran and the US. The US Energy Department also said it was working with US refiners to explore ways to boost fuel output and ease prices. President Trump’s decision to waive key sanctions and tariffs on Russia could ease restrictions on Russian energy trade. However, analysts remain skeptical about the impact of additional Russian diesel supplies on global markets, with Morgan Stanley estimating that Russia’s diesel deal would provide just 12 hours’ worth of supply.
Meanwhile, US gasoline inventories showed signs of recovery, with EIA data showing that stockpiles rose by 3.5 million barrels in the week ended October 9th, marking a second consecutive weekly build. However, persistent supply risks in the Middle East continued to limit the downside, as attacks on tankers threatened shipping through the Persian Gulf.