Gasoline Slips Back to Seven-Week Low
2026-10-21 16:22
By
Larissa Caser
1 min. read
US gasoline futures fell to around $3.10 per gallon, reaching a seven-week low as hopes of Russia-Ukraine diplomatic negotiations offset concerns over a persistently tight fuel market.
Russia has agreed to resume trilateral talks with the US and Ukraine on a potential peace deal which could increase fuel supplies in global markets.
Russia also announced that its first diesel cargo of around 300,000 barrels destined for the US would depart on Thursday, although its market impact could be limited as the US diesel exports about 1.5 million barrels a day.
Meanwhile, the US Energy Department announced plans to loan 315,000 barrels from the 1 million-barrel Northeast Home Heating Oil Reserve.
However, EIA data showed US gasoline inventories fell nearly 3 million barrels in the week ending October 16th, reversing prior builds and adding to warnings of a persistently tight fuel market.
Morgan Stanley has warned they could remain tight through mid-2027 as planned refinery outages rise sharply.