Gasoline Futures Follow Crude Oil Higher

U.S. gasoline futures have climbed to approximately $1.90 per gallon, influenced by the upward trend in crude oil prices. This follows OPEC+'s recent announcement indicating a halt to production increases early next year due to worries about a surplus in supply. On Sunday, the coalition of producers consented to raise output by 137,000 barrels per day in December, maintaining the rate of increases observed in both October and November. However, they also signaled that any additional increases would be paused from January to March, taking seasonal factors into account.

Furthermore, the Energy Information Administration (EIA) reported a significant decline in gasoline inventories, which fell by 5.9 million barrels in the last week of October, marking the fourth consecutive weekly reduction and exceeding the anticipated drop of 1.9 million barrels. This reduction aligns with supply challenges from refineries in Asia, as Indian gasoline producers may face higher costs for raw materials due to U.S. sanctions imposed on Russian oil giants, Rosneft and Lukoil.

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