The Rollercoaster Ride of Gasoline Two Weeks of Volatility

 

The Rollercoaster Ride of Gasoline Two Weeks of Volatility (3/3/2024 - 17/3/2024.)

Gasoline/oil prices experienced a decline from March 3, 2024, to March 10, 2024. This decline was primarily influenced by several factors. Firstly, skepticism surrounding China's ability to meet its economic growth targets led to decreased demand expectations, given that China is the world's largest oil importer. Investors were disappointed by the lack of substantial stimulus plans to bolster China's economy. Additionally, broader risk-off sentiment in financial markets, driven by concerns such as a potential U.S. interest rate cut and weakness in megacap stocks, further pressured oil prices downward.

Given these factors, the decreased demand outlook, coupled with ample supply, contributed to the decline in oil prices during the specified period .

Source: Reuters articles dated March 4, 2024, March 8, 2024, and March 7, 2024.

The graph

Shows the movement of Gasoline within two weeks

 Oil prices rose up on 11th March 2024 despite concerns easing over potential supply disruptions from Middle East conflicts and indications of weak demand from Chinese data. Additionally, an uptick in U.S. refining activity tempered any downward pressure on prices.

"It seems that the Middle East conflict is not high on the list of driving forces for investors, as it has not resulted in significant supply disruptions," noted Tamas Varga, an oil broker at PVM.

The rise in U.S. refining activity, which has the potential to tighten global crude supplies, acted as a mitigating factor against price drops. Despite concerns over six consecutive weeks of rising U.S. crude stockpiles due to low refining rates, there remains a risk of prices climbing higher. "Prices are at risk of upward movement," Yawger added.

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