Gasoline futures hovered close to $3.8 per gallon and were on track to end the week flat, as traders began to price in expectations of lower demand tied to concerns over a looming recession. The contract has fallen 10% from a record $4.33/Gal hit on June 6th as demand-side pressures are expected to ease, as traders believe that a recession is more likely to appear, following Fed Chair Jeremy Powell’s comments suggesting that the Fed was focused on bringing inflation down even with the risk of an economic downturn. Meanwhile, President Biden has called on Congress to suspend the 18.4-cents a gallon federal tax on gasoline and asked states to suspend their own gas taxes to relieve consumer prices. The risk of Europe tilting to a recession after Gazprom imposed partial supply cuts and China’s pandemic-induced sluggish demand have also weakened the outlook for gasoline demand abroad.
Historically, Gasoline reached an all time high of 4.33 in June of 2022. Gasoline - data, forecasts, historical chart - was last updated on June of 2022.
Gasoline is expected to trade at 4.02 USD/GAL by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 4.45 in 12 months time.