Gasoline Futures Rebound

US gasoline futures rose to around $3.18 per gallon after hitting a seven-week low, as concerns over tight fuel supplies persisted. EIA data showed US gasoline inventories fell by nearly 3 million barrels in the week ending October 16th, reversing previous builds and reinforcing signs of a tightening market. Supplies are expected to remain constrained as refineries prioritise higher-demand diesel ahead of winter, while routine maintenance limits gasoline output despite facilities operating near capacity. Morgan Stanley warned that tight conditions could persist through mid-2027 as planned refinery outages increase. Geopolitical risks added to market concerns, with Russia and Ukraine exchanging heavy air strikes just hours after President Putin agreed to resume peace talks with a US envoy, casting doubt on diplomatic progress. Meanwhile, US-Iran strikes continue in the Middle East, although crude exports through the Strait of Hormuz have recovered towards pre-conflict levels.

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.

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.