FX.co ★ Gasoline Rebounds from 5-Month Low

Gasoline futures in the US have climbed to $2 per barrel, recovering from the five-month low of $1.95 reached on September 22nd. This movement aligns with a similar resurgence in crude oil prices as the market reevaluates the extent of the global energy commodity surplus. Recently, US President Trump urged the European Union to prohibit the import of Russian oil and gas, in response to Brussels proposing additional sanctions against vessels transporting Russian crude oil and fuel. This has exacerbated the reduced availability in key regions due to Ukrainian strikes on Russian refineries, which have prompted Russian gas sales to plummet to a two-year low. Nevertheless, the outlook for demand remains subdued, limiting the potential for a notable rebound in gasoline futures. In the US, the usual high demand from summer travel has waned as September ends, while in China, policies aimed at reducing excess production have slowed manufacturing activity. Consequently, the profit margins from refining gasoline in the US as compared to Brent crude oil are nearing their lowest level since March.