Gasoline Hovers Near August Lows

US gasoline futures traded below $3.10 per gallon, hovering near their lowest levels since late August, as rising inventories and weaker demand weighed on prices. EIA data showed an unexpected 3.8 million-barrel build in gasoline stocks in the week ended October 23. Gasoline supplied, a proxy for demand, also fell by 624,000 bpd to 8.36 million bpd. However, inventories remained around 2% below their five-year seasonal average, while seasonal refinery maintenance and strong diesel production ahead of winter could limit gasoline output. Meanwhile, Middle East supply risks and Ukrainian strikes on Russian refineries continued to pose risks to global fuel flows. Separately, Europe plans to release 42 million barrels from strategic reserves over three months, largely diesel, while additional Chinese fuel-export quotas and potential Russian diesel shipments could increase global refined-product availability.