Gasoline Hovers Near August Lows

US gasoline futures traded around $3.10 per gallon, hovering near their lowest levels since late August, as rising inventories and weaker demand weighed on prices. EIA data showed an unexpected 3.8 million-barrel build in gasoline stocks in the week ended October 23. Gasoline supplied, a proxy for demand, also fell by 624,000 bpd to 8.36 million bpd. However, inventories remained around 2% below their five-year seasonal average, while seasonal refinery maintenance and strong diesel production ahead of winter could limit gasoline output. Meanwhile, Middle East supply risks and Ukrainian strikes on Russian refineries continued to pose risks to global fuel flows. Separately, Europe plans to release 42 million barrels from strategic reserves over three months, largely diesel, while additional Chinese fuel-export quotas and potential Russian diesel shipments could increase global refined-product availability.

US gasoline futures held near $3.15 per gallon, holding its decline from the previous session as traders weighed diplomatic efforts in the Middle East against supply risks. Negotiations over a potential peace deal between the US and Iran remain ongoing, although the US President recently 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.