Gasoline Declines from 6-Week High

Gasoline futures set for delivery in the New York Harbor experienced a decline to $1.95 per gallon, retreating from the six-week peak of $2.01 observed on November 11th. This shift occurred as the issue of petroleum commodity oversupply became a primary concern among investors once more. According to the U.S. Energy Information Administration (EIA), gasoline stocks in the United States increased by 2.4 million barrels for the week ending November 14th. This development was unexpected, as market analysts had anticipated a slight decrease in supplies, which would have ended a six-week trend of withdrawals. Further influencing the market, recent signals from the U.S. government suggested support for efforts toward a ceasefire between Russia and Ukraine, casting uncertainty over the continued sanctions against major Russian oil companies and refiners, which had limited supplies to significant Asian markets. Moreover, the International Energy Agency (IEA) projected that the oil market will remain in a state of oversupply in the upcoming year, despite the fact that peak oil demand may not yet have been achieved. This outlook aligns with signals of increased production from OPEC+ due to their planned output expansions, along with contributions from non-OPEC countries such as the United States, Canada, and Brazil.

The material has been provided by - RobotFX.Org