Gasoline Holds Near 3-Month Low
US gasoline futures traded near $2.90 per gallon, holding close to a three-month low as markets assessed diplomatic efforts between Washington and Tehran. Reports of a US strike on Iran’s Qeshm Island initially pressured prices, although Energy Secretary Wright said the strikes had not disrupted flows through the Strait of Hormuz. Ongoing negotiations have also helped ease concerns over further disruptions, with the US approving a draft memorandum of understanding presented to Iran by Qatar on Monday. Meanwhile, US gasoline inventories have shown some recovery. EIA data showed inventories unexpectedly rose by 3.8 million barrels in the week ended October 23rd, while gasoline supplied, a proxy for demand, fell by 624,000 bpd to 8.36 million bpd. However, inventories remain around 2% below their five-year seasonal average. Seasonal refinery maintenance and a shift toward higher diesel production ahead of winter could constrain gasoline output, limiting further downside in prices.
US gasoline futures traded near $2.90 per gallon, holding close to a three-month low as markets assessed diplomatic efforts between Washington and Tehran. Reports of a US strike on Iran’s Qeshm Island initially pressured prices, although Energy Secretary Wright said the strikes had not disrupted flows through the Strait of Hormuz. Ongoing negotiations have also helped ease concerns over further disruptions, with the US approving a draft memorandum of understanding presented to Iran by Qatar on Monday. Meanwhile, US gasoline inventories have shown some recovery.
EIA data showed inventories unexpectedly rose by 3.8 million barrels in the week ended October 23rd, while gasoline supplied, a proxy for demand, fell by 624,000 bpd to 8.36 million bpd. However, inventories remain around 2% below their five-year seasonal average. Seasonal refinery maintenance and a shift toward higher diesel production ahead of winter could constrain gasoline output, limiting further downside in prices.