Gasoline Holds Near March Lows
US gasoline futures rose above $2.70 a gallon but remained near their lowest level since early March, as traders weighed tight fuel supplies against expectations of faster progress towards ending the US-Iran war. Iran reported that three tankers had been damaged in the Strait of Hormuz, highlighting the risks to shipping through the vital waterway. Supply concerns were reinforced by EIA data showing US gasoline inventories fell by 222,000 barrels in the week ending October 30th, leaving stocks persistently below their five-year average. An EIA report also pointed to an expected shift among US refiners away from gasoline towards middle distillates, including distillate fuel oil and jet fuel, as those carry more attractive prices. Seasonal refinery maintenance could further constrain gasoline supplies. However, a Democratic takeover of the US Congress raised the prospect of greater constraints on military escalation and renewed diplomatic efforts.
US gasoline futures rose above $2.70 a gallon but remained near their lowest level since early March, as traders weighed tight fuel supplies against expectations of faster progress towards ending the US-Iran war. Iran reported that three tankers had been damaged in the Strait of Hormuz, highlighting the risks to shipping through the vital waterway. Supply concerns were reinforced by EIA data showing US gasoline inventories fell by 222,000 barrels in the week ending October 30th, leaving stocks persistently below their five-year average.
An EIA report also pointed to an expected shift among US refiners away from gasoline towards middle distillates, including distillate fuel oil and jet fuel, as those carry more attractive prices. Seasonal refinery maintenance could further constrain gasoline supplies. However, a Democratic takeover of the US Congress raised the prospect of greater constraints on military escalation and renewed diplomatic efforts.