Gasoline Slips Back to Seven-Week Low
US gasoline futures fell to around $3.10 per gallon, reaching a seven-week low as hopes of Russia-Ukraine diplomatic negotiations offset concerns over a persistently tight fuel market. Russia has agreed to resume trilateral talks with the US and Ukraine on a potential peace deal which could increase fuel supplies in global markets. Russia also announced that its first diesel cargo of about 300 thousand barrels will head to the US on Thursday, although most analysts doubt its impact on the markets as the US exports about 1.5 million barrels a day. Meanwhile, the US Energy Department is offering to loan up to nearly a third of the 1-million-barrel?US emergency heating oil reserve. However, EIA data showed US gasoline inventories fell nearly 3 million barrels in the week ending October 16th, rreversing previous builds and adding to warnings of a persistently tight fuel market. Morgan Stanley has warned they could remain tight through mid-2027 as planned refinery outages rise sharply.
US gasoline futures fell to around $3.10 per gallon, reaching a seven-week low as hopes of Russia-Ukraine diplomatic negotiations offset concerns over a persistently tight fuel market. Russia has agreed to resume trilateral talks with the US and Ukraine on a potential peace deal which could increase fuel supplies in global markets. Russia also announced that its first diesel cargo of about 300 thousand barrels will head to the US on Thursday, although most analysts doubt its impact on the markets as the US exports about 1.5 million barrels a day.
Meanwhile, the US Energy Department is offering to loan up to nearly a third of the 1-million-barrel?US emergency heating oil reserve. However, EIA data showed US gasoline inventories fell nearly 3 million barrels in the week ending October 16th, rreversing previous builds and adding to warnings of a persistently tight fuel market. Morgan Stanley has warned they could remain tight through mid-2027 as planned refinery outages rise sharply.