FX.co ★ Gasoline Approaches Lowest Year-To-Date

Gasoline futures in the United States dipped below $1.96 per gallon on Monday, continuing their sharp decline from the previous week and nearing the lowest point of the year. This trend comes as the perception of an oversupplied market for petroleum products counteracts the effects of reduced refinery output. The European Union has threatened to impose sanctions on nations purchasing Russian oil and fuel, as consistent demand from China and India continues to funnel funds to Moscow. This situation has led to diminished supply in key areas, exacerbated by Ukrainian attacks on Russian fuel refineries, resulting in Russian gas sales reaching a two-year low. However, expectations of subdued fuel demand have hindered a significant recovery in gasoline futures. As summer travel in the US diminished by late September, and China's anti-involution measures curtailed manufacturing activities, crack spreads for US gasoline futures compared to Brent crude oil fell to their lowest level since March.