FX.co ★ Gasoline Holds Near 1-Month Low

Gasoline futures for delivery in the New York Harbor have dipped below $1.90 per gallon, remaining close to the one-month low of $1.85 reached on November 25th. This decline mirrors the downward trend in crude oil benchmarks, amidst ongoing perceptions of market oversupply. Ample supplies of crude oil for refineries are expected to continue through the year-end, as OPEC+ countries have implemented a series of production increases to reclaim market share lost during the pandemic-induced production cuts. Additionally, leading non-OPEC producers in the United States, Canada, and Brazil have indicated that their major extraction levels will keep rising. Consequently, supertanker rates have reached a record high due to a spike in seaborne oil exports during the fourth quarter. Furthermore, gasoline stocks in the U.S. exceeded expectations for the second consecutive week, with data from the EIA showing a 2.5 million barrel increase for the week ending November 21st.