FX.co ★ Gasoline Gains on Modest OPEC+ Output Increase

Gasoline futures in the United States advanced over 1% to $1.88 per gallon on Monday, following OPEC+'s decision to implement a smaller production increase than anticipated. The organization announced on Sunday that it plans to boost output by 137,000 barrels per day (bpd) in November, replicating the modest increase of October, amid ongoing concerns about a potential supply surplus. It seems the group is steadfast in its goal of recapturing market share from non-OPEC competitors. Concurrently, Russia extended its gasoline export ban through the year’s end and enacted a partial diesel export ban after Ukrainian drone attacks targeted its oil refineries. Despite these recent increases, gasoline prices remain sluggish, nearing a one-year low reached last Friday, influenced by a bleak global economic forecast that could adversely impact fuel demand. According to the latest data from the Energy Information Administration (EIA), the supply of motor gasoline decreased by 441,000 barrels compared to the previous week, totaling 8.5 million barrels for the week ending September 26.