US gasoline futures slipped below $3.35 per gallon, ending a two-session advance as the outlook for fuel supply improved. Data from the EIA showed that US gasoline inventories unexpectedly increased by 382 thousand barrels in the week ending October 2nd, reversing two consecutive weekly draws. Additional relief may come from the G7’s planned release of emergency crude and diesel reserves, while retail gasoline prices have eased from recent highs amid softening demand.
At the same time, a storm in the Gulf of Mexico threatened to disrupt refinery operations. Facilities along the Gulf Coast represent roughly half of total US refining capacity, which is about 18.2 million barrels per day. Energy-market risks remained elevated due to ongoing attacks in the Middle East, even as regional shipment flows showed signs of improvement. Further tightening pressures stemmed from Russia’s continued restrictions on diesel exports and refinery outages, as well as reports that China has suspended some fuel exports scheduled for October.
