Gasoline futures designated for delivery in New York Harbor decreased by 1% to $1.78 per gallon, retracting from a high that had lasted for over a month, reached on January 13th. This decline was influenced by decreased geopolitical risk premiums, the revival of Venezuelan exports, and an increase in US inventories. President Trump moderated his stance on potential strikes against Iran in response to its repression of civil unrest. Concurrently, the US opted to withdraw some personnel from military bases in the Middle East, given Iranian threats of retaliation should the US initiate an attack.
On the supply front, Venezuela, a member of OPEC+, restarted its oil exports. Reports indicated that two supertankers, each loaded with 1.8 million barrels of crude, had left Venezuelan waters. These shipments may signify the commencement of a 50-million-barrel supply agreement aimed at reviving Venezuelan exports following the US-led displacement of President Nicolas Maduro. In addition, US gasoline inventories surged by nearly 9 million barrels in the week concluding on January 9, marking the most significant increase since December 2023.
