Gasoline futures traded around $2.8 per gallon ahead of the end of summer and into the Labor Day weekend, as investors monitor Hurricane Idalia's impact on fuel demand and supply. Kinder Morgan reported minimal damage to its terminals in Florida due to the hurricane, and they planned to close terminals in the Charleston area. According to new data from the Energy Information Administration (EIA), gas demand rose from 8.910 to 9.068 million b/d last week. Meanwhile, total domestic gasoline stocks decreased by 214 thousand to 217.412 million bbl, less than market expectations of a 933 thousand draw. Gasoline prices in the US hit a one-year high of $2.9859 on August 11th, driven by production cuts by Saudi Arabia and Russia, alongside a mix of unexpected shutdowns and postponed maintenance in the first half of the year, resulting in a higher-than-usual refining capacity offline.
Historically, Gasoline reached an all time high of 4.33 in June of 2022. Gasoline - data, forecasts, historical chart - was last updated on August of 2023.
Gasoline is expected to trade at 2.95 USD/GAL by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 3.27 in 12 months time.