FX.co ★ Gasoline Halts Rebound

In the United States, gasoline futures have dropped to below $2.10 per tonne, interrupting a previous rebound that peaked at $2.12 on April 22nd. This decline can be attributed to the anticipated increase in feedstock supply for major refiners, coupled with potential downward risks in demand from significant energy consumers. Kazakhstan has announced that it will give precedence to its national interests over adhering to the production limits set by OPEC+. This stance suggests a potential reduction in output restraint. While this move could expand supply to major consumer markets, it also threatens to heighten tensions among cartel members, given the ongoing challenges producers face in maintaining output below their quota levels. This development comes despite OPEC+ unexpectedly announcing plans to boost production at a rate three times faster than initially projected for May. Concurrently, the intensifying trade conflict with the United States has led to a 29% decline in Chinese fuel imports from the previous month, dropping to 1.38 million tonnes in February, or roughly 283.2 thousand barrels per day.