Gasoline Futures Hold Steady

US gasoline futures held near $3.15 per gallon, holding its decline from the previous session as traders weighed elevated supply risks against signs of improving inventories. Yemen’s Iran-backed Houthis claimed to have struck Saudi Arabia’s largest oil refinery, while reports said Washington warned Gulf states to prepare for a possible post-midterm military campaign against Iran. Geopolitical tensions add to concerns over an already tight fuel market, with gasoline inventories remaining 2% below seasonal norms, although they have recovered partially as driving demand eases. EIA data showed an unexpected build of 3.8 million barrels in the week ending October 23rd. Still, supplies are expected to remain constrained as refineries prioritize higher-demand diesel ahead of winter. Seasonal maintenance is also limiting gasoline output despite facilities operating near capacity. Meanwhile, Ukrainian strikes on Russian refineries also add to geopolitical risks on global fuel markets.

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.