US gasoline futures climbed to $2.75 per gallon but remained close to their lowest levels since early March, as traders balanced concerns over tight fuel supplies against expectations of faster progress toward ending the US–Iran conflict. Iran reported that three tankers had been damaged in the Strait of Hormuz, underscoring the risks to shipping through this critical chokepoint.
Supply worries were reinforced by EIA data showing that US gasoline inventories declined by 222,000 barrels in the week ending October 30th, keeping stocks consistently below their five-year average. The EIA also indicated that US refiners are expected to shift output away from gasoline toward middle distillates, such as distillate fuel oil and jet fuel, which currently command higher prices. Ongoing seasonal refinery maintenance could further limit gasoline production.
On the other hand, the Democratic takeover of the US Congress increased the likelihood of constraints on further military escalation and a renewed push for diplomatic solutions.
