FX.co ★ Gasoline Holds Rebound from 5-Month Low

Gasoline futures in the United States have seen a slight increase, positioned at $2 per barrel after dipping to a five-month low of $1.95 on September 22nd. This movement aligns with a recovery in crude oil prices as the market reassesses the extent of global energy commodity oversupply. The European Union's proposal to impose further sanctions on tankers transporting Russian crude oil and fuel has contributed to reduced availability in key regions. Additionally, Ukrainian strikes on Russian refineries have led to a significant drop in Russian gas sales, reaching a two-year low. However, the expectation of diminished fuel demand has limited any substantial rise in gasoline futures. As the summer travel season in the U.S. concluded by late September, and China's anti-involution policies hampered manufacturing activity, crack spreads between U.S. gasoline futures and Brent crude oil remained near their lowest levels since March. This trend persisted despite the latest weekly report from the Energy Information Administration (EIA) showing a decline in U.S. gasoline stocks, indicating an increase in product supply.