2025.10.1618:30:06UTC+00Gasoline Approaches 2021 Lows

U.S. gasoline futures have declined towards $1.80 per gallon, nearing their lowest mark since February 2021. This reduction is primarily attributed to falling crude oil prices, substantial stock levels, and a decrease in demand. The drop in crude prices was further supported by the Energy Information Administration's (EIA) recent data, which indicated a 3.5 million-barrel increase in U.S. crude inventories for the week ending October 10th. This rise intensifies concerns over diminished demand amidst ongoing trade tensions between the U.S. and China. Gasoline inventories saw a decrease of 267,000 barrels, bringing them just below the five-year average, though this decrease was significantly less than the previous week's draw of 1.6 million barrels, suggesting that supply remains adequate. The EIA also highlighted a downturn in gasoline demand, which has reached its lowest point in four months as autumn progresses. It is projected that American drivers will, by 2025, spend the smallest fraction of their disposable income on gasoline in two decades, with expenditures anticipated to stay below 2% of income.