US gasoline futures slipped below $3.20 per gallon to a two-week low as signs emerged of improving fuel supply. According to the EIA, US gasoline inventories increased by 3.5 million barrels in the week ending October 9, marking a second consecutive weekly build and helping to ease concerns over tight market conditions.
The data followed the IEA’s confirmation that it will complete the release of 100 million barrels of oil agreed in March, under pressure from US officials seeking to tame elevated fuel prices. At the same time, Russia reported that diesel shipments from its recently freed-up supplies have begun reaching global markets.
Even so, geopolitical risks remain high as Russia and Ukraine move further away from a US-backed energy truce. Ukrainian President Volodymyr Zelenskyy ordered continued strikes on Russian refineries, while President Vladimir Putin downplayed their impact. In addition, attacks on tankers transiting the Strait of Hormuz and assaults by Yemen’s Iran-backed Houthi militia have heightened concerns over potential disruptions to global oil flows.
