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Gasoline and Crude Oil Prices Surge on Saudi-Russian Production Cuts and Bullish EIA Report

Gasoline and Crude Oil Prices Soar Amid Saudi-Russian Production Cuts and Bullish EIA Report. (Photo: Google)

A weaker dollar boosted gasoline and crude oil prices, with support coming from extended production cuts by Saudi Arabia and Russia, alongside a bullish EIA report showing a substantial decline in U.S. crude inventories.

Extended production cuts by Saudi Arabia and Russia, along with a bullish EIA report showing a significant drop in U.S. crude inventories, boosted gasoline and crude oil prices. (Photo: Google)

Recent market trends witnessed moderate gains in both gasoline and crude oil prices for October.

According to an article published by Bar Chart, in recent market developments, October WTI crude oil and October RBOB gasoline prices both saw moderate gains. Gasoline and crude oil prices reached a 1.5-week high, while a weaker dollar provided support for energy prices.

Furthermore, an extension of crude production cuts by Saudi Arabia and Russia until year-end and a bullish EIA report indicating a significant drop in U.S. crude inventories contributed to the rise in gasoline and crude oil prices.

Saudi Arabia’s commitment to maintaining a 1.0 million bpd crude production cut through December, resulting in a three-year low for its output, and Russia’s pledge to continue its 300,000 bpd production cut also supported gasoline and crude oil prices.

Additionally, a rise in the crude crack spread, encouraging refiners to increase gasoline and crude oil purchases for distillate production, contributed to the bullish sentiment.

However, Iranian crude exports hit a 5-year high, adding to global supplies and exerting bearish pressure on gasoline and crude oil prices.

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The prospect of improved Iran-U.S. relations leading to increased Iranian crude exports and a decline in crude demand in India further weighed on gasoline and crude oil prices.

According to an article published by NASDAQ, nonetheless, a decrease in Russian crude shipments and reduced crude in floating storage supported gasoline and crude oil prices.

The latest EIA report indicated that U.S. crude oil inventories were below the seasonal 5-year average, while gasoline and distillate inventories were also lower. U.S. crude oil production remained steady but slightly below its pre-pandemic peak.

Active U.S. oil rigs increased slightly, yet they remained well below their previous highs, indicating a gradual recovery in U.S. gasoline and crude oil production capacity from pandemic lows. These factors collectively influenced gasoline and crude oil market dynamics in the recent period.

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