Prev Arrow Commodities

Gasoline ($GASOLINE) Commodity Forecast: Down 5.0% Today

Morpher AI identified a bearish signal. The commodity price may continue to fall based on the momentum of the negative news.

What is Gasoline?

Gasoline is a widely traded commodity used primarily as fuel for vehicles and machinery. The market for gasoline is influenced by various factors such as supply and demand dynamics, geopolitical events, and economic indicators.

Why is Gasoline going down?

GASOLINE commodity is down 5.0% on Sep 4, 2024 7:16

  • Gasoline prices have been on a downward trend, hitting multi-month lows due to a combination of factors:
  • Weaker global demand and economic uncertainties, particularly slowdowns in key markets like China and reduced diesel demand in Europe, are contributing to the downward pressure on gasoline prices.
  • OPEC's decision to maintain gradual output cuts next month, despite signs of lower fuel demand, is further impacting prices negatively.
  • Concerns over an energy oversupply due to subdued domestic demand in China, as highlighted by major Chinese oil producers and refiners cautioning about the situation, are also weighing on gasoline prices.
  • The anticipation of a decline in gasoline inventories, as indicated by consecutive weeks of decreasing stocks, is not enough to offset the broader bearish sentiment in the market.

GASOLINE Price Chart

GASOLINE News

Gasoline Hits 32-month Low

Gasoline decreased to a 32-month low of 1.97 USD/Gal. Over the past 4 weeks, Gasoline lost 15.32%, and in the last 12 months, it decreased 24.01%.

Gasoline Hits 34-week Low

Gasoline decreased to a 34-week low of 2.05 USD/Gal. Over the past 4 weeks, Gasoline lost 11.36%, and in the last 12 months, it decreased 20.45%.

Gasoline Approaches Year-to-Date Low

US gasoline futures fell to below $2.07 per gallon in September, the lowest since early January, as signs of increasingly low fuel demand in major consumers added to pressure from elevated supply. Data from China’s NBS showed that factory activity in the country sank at the sharpest pace this year, extending concerns that the lack of stimulus by Beijing will result in a greater decline in demand for energy-intensive industrial goods. This was aligned with earnings data from major Chinese oil producers and refiners suggesting that lower fuel demand drove Sinopec, PetroChina, and CNOOC to pare their returns. Despite growing signs of lower fuel demand, OPEC decided to maintain the gradual reduction of output cuts next month, furthering the downturn in prices.

Gasoline Hit Near 8-Month Low

U.S. gasoline futures fell to $2.1 per gallon in late August, reaching a nearly eight-month low as oil prices declined following news that OPEC+ will move forward with output hikes in Q4, likely starting in October. Oil prices are poised for consecutive monthly losses this year, driven by weaker demand from China, leading Goldman Sachs and Morgan Stanley to slash their price forecasts. Additionally, persistent concerns over weak demand from major fuel consumers weighed on gasoline prices, with S&P and regional PMIs showing continued contraction in the U.S. manufacturing sector. Meanwhile, China’s economic slowdown and decarbonization efforts prompted PetroChina and Sinopec to caution about an energy oversupply due to subdued domestic demand.

Gasoline Futures Fall to Over 7-Month Low

US gasoline futures have dropped below $2.20 per gallon, nearing their lowest level since mid-January, as traders await the latest weekly stockpile data. The EIA report is anticipated to show a 1.5 million barrel decline in gasoline inventories, following a previous 1.606 million barrel drop. The API report on Tuesday pointed to a 1.86 million barrel decrease, marking the third consecutive week of declining gasoline stocks. Still, weaker global demand and economic uncertainties, including slowdowns in key markets like China and reduced diesel demand in Europe, are contributing to the downward pressure.

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Gasoline Price History

30.07.2024 - GASOLINE Commodity was down 5.0%

  • Gasoline futures experienced a bearish movement due to weaker global demand and economic uncertainties, including slowdowns in key markets like China and reduced diesel demand in Europe.
  • The rebound in gasoline prices was driven by rising oil prices as a dovish US Fed pressured the dollar, boosting dollar-priced energy commodities.
  • Signs of weakening demand from major economies and potential delays in OPEC+ output cuts contributed to speculation that supported energy prices.
  • The fluctuation in gasoline prices highlights the volatility in the energy market, where supply and demand dynamics, geopolitical factors, and economic indicators play a significant role in price movements.

04.08.2024 - GASOLINE Commodity was down 5.0%

  • Gasoline prices have been on a downward trend, hitting multi-month lows due to a combination of factors:
  • Weaker global demand and economic uncertainties, particularly slowdowns in key markets like China and reduced diesel demand in Europe, are contributing to the downward pressure on gasoline prices.
  • OPEC's decision to maintain gradual output cuts next month, despite signs of lower fuel demand, is further impacting prices negatively.
  • Concerns over an energy oversupply due to subdued domestic demand in China, as highlighted by major Chinese oil producers and refiners cautioning about the situation, are also weighing on gasoline prices.
  • The anticipation of a decline in gasoline inventories, as indicated by consecutive weeks of decreasing stocks, is not enough to offset the broader bearish sentiment in the market.

04.09.2023 - GASOLINE Commodity was down 5.1%

  • Gasoline prices experienced a strong bearish movement due to the decline in WTI crude oil futures and the strength of the US dollar.
  • Reduced fueling up during the back-to-school season and less favorable weather conditions also contributed to the decline.
  • Despite a slight increase in gas demand, it was still lower compared to the same period last year.
  • The increase in total domestic gasoline stocks further added to the bearish sentiment.

30.10.2023 - GASOLINE Commodity was down 5.1%

  • Gasoline experienced a bearish movement today, with prices declining.
  • The decline can be attributed to factors such as declining demand and steady supply, as well as the outcome of the OPEC+ meeting.
  • Gasoline stocks in the United States saw a significant increase, indicating higher supply levels.
  • The market also reacted to the news of a 1% decline in US gasoline consumption forecasted for 2024, which further added to the bearish sentiment.

31.07.2023 - GASOLINE Commodity was down 7.6%

  • Gasoline futures experienced a bearish movement, with prices hovering around $2.8 per gallon, close to a two-week low.
  • The dimming demand outlook, as indicated by weaker-than-anticipated business activity figures in the US and Europe, contributed to the downward pressure on gasoline prices.
  • The unexpected increase in US gasoline inventories also added to the bearish sentiment, countering market expectations of a draw.
  • Reports suggesting that Saudi Arabia may extend its crude production cut provided some support, but it was not enough to offset the overall negative market sentiment.

16.10.2023 - GASOLINE Commodity was down 5.1%

  • Gasoline prices have experienced a strong bearish movement, hitting a 48-week low and approaching an 11-month low.
  • The decline in gasoline prices can be attributed to several factors, including muted fuel demand, a shift to a more cost-effective winter-blend gasoline, and a projected decline in US gasoline consumption.
  • Remote work, improved fuel efficiency, high gasoline prices, and persistent inflation are some of the factors contributing to the anticipated decline in gasoline consumption.
  • Surplus gasoline supplies and decreased seasonal fuel demand are also impacting gasoline futures.

03.07.2023 - GASOLINE Commodity was down 5.6%

  • Gasoline futures in the US fell to $2.75 per gallon, retreating from a one-year high of $2.9, indicating a significant decrease in price.
  • The downturn in US energy commodities since the start of August, including gasoline, is being attributed to the market's assessment of the supply outlook.
  • The increase in gasoline stocks in the US, which surprised the markets, along with a decrease in product supplied, suggests a potential decrease in demand for gasoline.
  • The challenging of record-high cuts in crude oil inventories may also have contributed to the bearish movement in gasoline prices.

29.08.2023 - GASOLINE Commodity was down 5.7%

  • Gasoline futures rebounded from a one-month low, tracking the surge in oil prices due to concerns of low supply. This was driven by OPEC nations extending output cuts and the Russian government banning grey fuel exports and raising fuel export duties.
  • The latest EIA data reported a decline in gasoline production and a bigger-than-expected drop in crude inventories, further fueling concerns of low supply.
  • Gasoline prices also decreased to a four-week low, in line with the seasonal pattern observed during this time of year when there is typically reduced fueling up due to the back-to-school season and less favorable weather conditions. Additionally, Russia's temporary ban on diesel and gasoline exports added pressure to global fuel markets.

15.01.2024 - GASOLINE Commodity was down 5.1%

  • The bearish movement in gasoline today can be attributed to the following factors:
  • 1. Drawback in demand and cheaper crude oil prices: The increase in crude oil inventories in the US, along with a drop in gasoline product supplied, tempered the demand outlook for gasoline. Cheaper prices for crude oil inputs also contributed to the bearish movement.
  • 2. Geopolitical tensions in the Middle East: Ongoing conflicts in the Middle East have created market instability. Concerns over vessel safety in the Red Sea region due to attacks by Yemen's Houthis have also impacted the market.
  • 3. Ukrainian attacks on Russian refineries: The export capacity for Russia was hampered by the attacks on its refineries by Ukraine, adding to the overall woes in the market.
  • 4. Market correction after a recent high: Gasoline had recently reached a peak in its price, and the bearish movement could be seen as a correction after the price increase.
  • Overall, the bearish movement in gasoline today can be attributed to a combination of factors including demand and supply dynamics, geopolitical tensions, and market corrections after recent highs.

03.05.2024 - GASOLINE Commodity was down 2.1%

  • Gasoline futures dropped to a 3-month low due to evidence of slowing demand and ample availability, with US inventories increasing by over 2 million barrels, contrary to market expectations.
  • The decrease in product supplied, a key indicator of consumer demand, by 166 thousand barrels right before Memorial Day weekend also contributed to the bearish movement.
  • Investors are closely monitoring the upcoming OPEC+ meeting where the cartel is expected to extend voluntary output cuts. The struggle of key oil-exporting nations to comply with production cuts raises skepticism over their ability to react to slowing demand, adding further pressure on gasoline prices.

29.01.2024 - GASOLINE Commodity was up 8.3%

  • Gasoline futures experienced a strong bullish movement due to a combination of factors:
  • Recent evidence of low supply and steady demand, with gasoline demand rising and stocks decreasing, leading to a bullish sentiment in the market.
  • The decision by a government to ban gasoline exports for six months to address domestic demand and refinery maintenance concerns added to the bullish outlook.
  • Anticipation of a draw in gasoline inventories for the fourth consecutive period, coupled with geopolitical tensions affecting WTI crude futures, further supported the bullish trend.
  • Despite signs of slowing demand and stable supply in previous weeks, the current market sentiment shifted positively, driven by the latest data and geopolitical developments.
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Disclaimer
Morpher is not liable for the content of the AI investment insights. Like most GPT-powered tools, these summaries may contain AI hallucinations and inaccurate information. Morpher is not presenting you with any investment advice. All investments involve risk, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. These summaries do not constitute investment advice.