16.12.202515:31:42UTC+00Gasoline Tumbles to Nearly 5-Year Lows

Gasoline futures for delivery in New York Harbor have fallen to below $1.70 per gallon, marking the lowest point since early 2021. This decline is attributed to a significant oversupply in the market, stemming from an abundance of crude oil and a substantial availability of refined fuel. The possibility of the conflict in Ukraine nearing resolution has sparked expectations of relaxed restrictions on Russian oil flows, further reducing supply risks at a time when global inventory levels are already high. Throughout the year, increased production has exerted downward pressure on prices, with OPEC+ reinstating previously halted production and non-OPEC nations, especially in the Americas, continuing to boost supply, ensuring refineries remain well-provisioned. Meanwhile, weaker economic indicators from China have created uncertainty regarding demand forecasts, while stable US retail fuel consumption has limited seasonal growth. Additionally, a surplus in seaborne exports and a record level of supertanker availability and rates have facilitated the movement of excess barrels, maintaining flexibility within physical markets.