Gasoline Futures Drop

US gasoline futures fell below $3.35 per gallon, snapping a two-day winning streak amid prospects of higher fuel supplies. EIA data showed US gasoline inventories unexpectedly rose by 382 thousand barrels in the week ending October 2nd, rebounding after two consecutive draws. The planned G7 release of emergency crude and diesel reserves could also ease supply pressures, while gasoline prices at the pump have retreated from recent peaks as demand weakens. However, a storm in the Gulf of Mexico threatened to disrupt refinery operations, with Gulf Coast refineries accounting for about half of US refining capacity, which stands at 18.2 million barrels per day. Meanwhile, continued attacks in the Middle East kept energy-market risks elevated despite improvement in regional shipments. Russia’s ongoing restrictions on diesel exports and refinery disruptions, alongside China’s reported suspension of some October fuel exports, also tightened fuel markets.

US gasoline futures rose above $3.30 per gallon, gaining for the second straight session, as a storm in the Gulf of Mexico threatened to disrupt refinery operations. Refineries in US Gulf states account for about half of US refining capacity, which stands at 18.2 million barrels per day. Meanwhile, continued attacks in the Middle East kept energy-market risks elevated despite improvement in regional shipments. Russia’s ongoing restrictions on diesel exports and refinery disruptions, alongside China’s reported suspension of some October fuel exports, also tightened fuel markets. Gasoline inventories were 7% below the five-year average as of September 25, according to the EIA, while refinery utilization stood at 92.5%. The EIA also raised its 2026 and 2027 oil price forecasts, citing rapidly falling global inventories and supply risks. Separately, the G7’s planned release of emergency crude and diesel reserves could provide some relief.

US gasoline futures fell to around $3.20 per gallon, declining for the third straight session, pressured by seasonal weakness in fuel demand and the G7’s planned release of emergency oil and diesel reserves. The release will be coordinated by the International Energy Agency over the next four months. The broader refined-products complex also faced pressure after President Trump signed an executive order expanding access to tax-exempt diesel. Meanwhile, gasoline pump prices have eased from recent peaks as demand weakens following the end of the summer driving season. Nevertheless, global fuel markets remain tight as EIA data showed US gasoline inventories fell by 1.7 million barrels in the week ended September 25, while refinery utilization stood at 92.5%. Russia extended restrictions on most diesel exports through October, although it is considering a partial lift amid balanced domestic supplies. China also suspended some oil-product exports for October.