Gasoline Falls to Two-Week Low

US gasoline futures fell to around $3.20 per gallon on Thursday, hitting a two-week low, as investors assessed a US proposal to ease sanctions on shadow fleet tankers to reduce petroleum shipping costs and facilitate oil flows. The discussions follow President Donald Trump's temporary easing of sanctions on Russian diesel exports last week, although analysts have questioned the deal's potential to lower fuel prices given the relatively small volume involved. Meanwhile, Russia accused Ukraine of attacking two oil refineries, including the 400,000-barrel-per-day Ryazan facility, raising doubts over the prospects for an energy truce announced by Trump. Separately, continued attacks on shipping near the Strait of Hormuz continues to pose risks to global oil flows. On the inventory front, API data showed that US gasoline stocks rose by 1.1 million barrels in the week ended October 9.

US gasoline futures traded around $3.25 a gallon, holding most of its recent losses, as traders continue to weigh the impact of fuel supplies from Russia. While Russia had agreed to supply diesel to global markets to help lower fuel prices, experts believe the deal announced by President Trump to be very small, equal to just about 10 days of total US demand or slightly more than a single day of global demand. Prospects of a Russia–Ukraine energy ceasefire also remain in focus as Russia continued to attack Ukrainian energy facilities, contrary to President Trump's claims of an immediate truce. Both Ukraine and Germany have pushed for strike bans to include Ukrainian electricity infrastructure as well as Russian refineries. Attacks on tankers crossing the Strait of Hormuz also remain risks to feedstock supply. Against this backdrop, pump prices remain elevated, with 12.1% of global refining capacity offline as of September, although prices have eased in recent weeks.

US gasoline futures fell to around $3.25 per gallon, weighed down by prospects for increased Russian fuel supplies. President Donald Trump said Russia had agreed to supply diesel to global markets to help lower fuel prices, while his administration temporarily eased US sanctions on Russian fuel. Markets continued to assess the prospects for an energy ceasefire between Russia and Ukraine following Trump’s announcement of an immediate truce, even as Russia continued striking Ukrainian energy infrastructure. Meanwhile, continued tanker attacks near the Strait of Hormuz threatened regional supply flows, raising concerns that further disruptions could reverse the recovery in shipments. Fuel prices have eased in recent weeks but remained elevated, with 12.1% of global refining capacity offline as of September. Separately, Gulf of Mexico producers worked to restore offshore output following Hurricane Isaias.