FX.co ★ Gasoline Holds Rebound from 4-Year Low

In November, US gasoline futures remained steady at the $1.90 per gallon level, sustaining a recovery from the four-year low of $1.80 seen in mid-October. This stability comes as the markets re-evaluate the extent of the refined fuel oversupply. According to data from the Energy Information Administration (EIA), US gasoline inventories have decreased more than anticipated for the fifth consecutive week. Moreover, Chinese oil refiners have curtailed their crude imports from Russia, following US sanctions on Rosneft and Lukoil. Similarly, Indian refineries reportedly avoided renewing contracts for Urals oil deliveries. Additionally, OPEC+ members have signaled they plan to maintain production levels through the first quarter of 2025 after a forecasted increase next month. These developments stand in contrast to evidence suggesting that the market for petroleum commodities will continue to experience oversupply next year. This outlook is driven by anticipated production hikes from OPEC, rising output levels in the US, Canada, and Brazil, and robust maritime exports, which pushed last week's sea oil volumes to a record high.