Gasoline Futures Retreat

US gasoline futures eased to around $3.15 per gallon after reaching a one-week high amid hopes of a diplomatic resolution to the conflict in the Middle East. Iranian leader Khamenei said officials should ensure conditions for ending the war are met, urging an end to the "neither war nor peace" state. The statement adds optimism to a persistently tight fuel market. EIA data showed US gasoline inventories fell by nearly 3 million barrels in the week ending October 16th, reversing previous builds and and leaving stocks below seasonal norms. Supplies are expected to stay constrained as refineries prioritize higher-demand diesel ahead of winter. Routine maintenance also limits gasoline output despite facilities running near capacity, with Morgan Stanley warning tight conditions could persist through mid-2027. Still, pump prices have eased in recent weeks as driving demand wavers. Geopolitical risks added to concerns, with Russia and Ukraine continuing to exchange heavy air strikes.

US gasoline futures traded around $3.20 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.