Gasoline Hits 8-Month Low
US gasoline futures fell to around $2.70 per gallon, hitting their lowest level since early March, as expectations of faster progress toward ending the US-Iran war weighed on prices. Democrats' victory in both chambers of Congress in the US midterm elections raised the prospect of greater constraints on military escalation and renewed diplomatic efforts. Adding to bearish pressures, Energy Secretary Wright said the administration is working with refiners to boost output and restart idled facilities, noting that prices peaked in September and should decline further. However, supply conditions remained tight as EIA data showed that US gasoline inventories fell by 222 thousand barrels in the week ending October 30th, leaving it 2% below the five-year average. Seasonal refinery maintenance and a shift toward diesel production ahead of winter could also constrain gasoline supply.
US gasoline futures fell to around $2.70 per gallon, hitting their lowest level since early March, as expectations of faster progress toward ending the US-Iran war weighed on prices. Democrats' victory in both chambers of Congress in the US midterm elections raised the prospect of greater constraints on military escalation and renewed diplomatic efforts. Adding to bearish pressures, Energy Secretary Wright said the administration is working with refiners to boost output and restart idled facilities, noting that prices peaked in September and should decline further.
However, supply conditions remained tight as EIA data showed that US gasoline inventories fell by 222 thousand barrels in the week ending October 30th, leaving it 2% below the five-year average. Seasonal refinery maintenance and a shift toward diesel production ahead of winter could also constrain gasoline supply.