Gasoline Futures Retreat
US gasoline futures fell below $3.20 per gallon after reaching a one-week high amid hopes of a diplomatic resolution to the conflict in the Middle East. Iranian leader Khamenei said officials should ensure conditions for ending the war are met, urging an end to the "neither war nor peace" state. The statement adds optimism to a persistently tight fuel market. EIA data showed US gasoline inventories fell by nearly 3 million barrels in the week ending October 16th, reversing previous builds and and leaving stocks below seasonal norms. Supplies are expected to stay constrained as refineries prioritize higher-demand diesel ahead of winter. Routine maintenance also limits gasoline output despite facilities running near capacity, with Morgan Stanley warning tight conditions could persist through mid-2027. Still, pump prices have eased in recent weeks as driving demand wavers. Geopolitical risks added to concerns, with Russia and Ukraine continuing to exchange heavy air strikes.
US gasoline futures fell below $3.20 per gallon after reaching a one-week high amid hopes of a diplomatic resolution to the conflict in the Middle East. Iranian leader Khamenei said officials should ensure conditions for ending the war are met, urging an end to the "neither war nor peace" state. The statement adds optimism to a persistently tight fuel market. EIA data showed US gasoline inventories fell by nearly 3 million barrels in the week ending October 16th, reversing previous builds and and leaving stocks below seasonal norms.
Supplies are expected to stay constrained as refineries prioritize higher-demand diesel ahead of winter. Routine maintenance also limits gasoline output despite facilities running near capacity, with Morgan Stanley warning tight conditions could persist through mid-2027. Still, pump prices have eased in recent weeks as driving demand wavers. Geopolitical risks added to concerns, with Russia and Ukraine continuing to exchange heavy air strikes.