Gasoline Futures Rebound

US gasoline futures rose to around $3.15 per gallon after hitting a seven-week low in the previous session, as persistent supply risks offset prospects for improved fuel availability. Unconfirmed reports of a proposal to revive talks between Iran and the US had pressured prices, while the US Energy Department said it was working with domestic refiners to explore ways to boost fuel output and ease prices. Meanwhile, President Trump's decision to waive key sanctions and tariffs on Russia raised prospects for increased Russian fuel exports. However, Morgan Stanley warned that oil-product markets could remain tight through mid-2027 as planned refinery outages rise sharply, potentially constraining supplies even if war-related disruptions ease. EIA data showed that US gasoline inventories rose by 3.5 million barrels in the week ended October 9, marking a second consecutive weekly build and signaling a recovery in domestic supply.

US gasoline futures fell to around $3.10 per gallon, reaching their lowest level in seven weeks, following unconfirmed reports of a proposal to revive talks between Iran and the US. The US Energy Department also said it was working with US refiners to explore ways to boost fuel output and ease prices. President Trump’s decision to waive key sanctions and tariffs on Russia could ease restrictions on Russian energy trade. However, analysts remain skeptical about the impact of additional Russian diesel supplies on global markets, with Morgan Stanley estimating that Russia’s diesel deal would provide just 12 hours’ worth of supply. Meanwhile, US gasoline inventories showed signs of recovery, with EIA data showing that stockpiles rose by 3.5 million barrels in the week ended October 9th, marking a second consecutive weekly build. However, persistent supply risks in the Middle East continued to limit the downside, as attacks on tankers threatened shipping through the Persian Gulf.

US gasoline futures traded around $3.20 per gallon, holding their recent losses as President Donald Trump's decision to waive key sanctions and tariffs on Russia raised prospects for increased Russian fuel exports. Trump said the move would help facilitate peace talks with Moscow, while Secretary of State Marco Rubio said the administration would assess its economic impact over the next 60 days. Meanwhile, US gasoline inventories showed some signs of recovery, with EIA data showing that stockpiles rose by 3.5 million barrels in the week ending October 9, marking a second consecutive weekly build. However, supply risks remained elevated in the Middle East as attacks on commercial vessels disrupted shipments through the Persian Gulf, with crude flows falling to around 8.5 million barrels per day last week from more than 20 million bpd a week earlier, according to Kpler. Adding to regional tensions, Egypt said it was ready to support Saudi Arabia against Yemen's Iran-aligned Houthis.