Gasoline Prices Rebound Amid Supply Concerns

 

Gasoline Prices Rebound Amid Supply Concerns (15th April 2024 - 28th April 2024)

Over the past two weeks, gasoline futures in the United States have seen a moderate rebound, trading above the $2.70 per gallon mark. This comes after touching a four-week low of $2.69 on April 22nd, as reported by industry sources.

The uptick in prices can be attributed to a fresh decline in domestic gasoline inventories, according to the latest data from the Energy Information Administration (EIA). The report showed that gasoline stocks fell by 634,000 barrels in the week ending April 19th, extending the previous week's 1.15-million-barrel draw. This magnified the pressure on supply, especially as crude oil stocks also saw a sharper-than-expected decline of 6.38 million barrels.

Supply concerns were further exacerbated by issues in foreign markets, particularly the continued pressure on the capacity of Russian refineries due to maintenance, floods, and attacks from Ukrainian drones. These disruptions have contributed to tightening global gasoline supplies.

However, gasoline futures remained below the one-year high of $2.82 reached earlier in April, as eased concerns over geopolitical unrest in the Middle East lowered the risk premium on petroleum-derived commodities. Analysts note that this suggests the market is still grappling with a delicate balance between supply and demand factors.

Moving forward, industry experts advise consumers and businesses to closely monitor the evolving gasoline price landscape, as further volatility is possible in the coming weeks and months. Staying informed on the latest developments and adjusting budgets accordingly will be crucial in navigating the dynamic energy market.

https://tradingeconomics.com/commodity/gasoline







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