U.S. gasoline futures settle at pre-Ukrainian crisis low

Gasoline prices are shown as fuel costs continue to climb near record high territory in Encinitas, California, U.S., May 9, 2022. REUTERS/Mike Blake

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HOUSTON, Aug 30 (Reuters) – U.S. gasoline futures settled at $2.6944 a gallon on Tuesday, their lowest level since February 18, before the invasion of Ukraine by Russia.

The Ukrainian crisis has rattled energy markets, driving up fuel prices. Gasoline prices around the world also rose due to strong demand, a lack of Chinese exports that had boosted supply, and reduced global refining capacity due to pandemic-related shutdowns.

However, more recently, fears of a global recession and the record amount of emergency oil sales from national reserves have helped cool the market.

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U.S. retail gasoline prices averaged $3.844 a gallon on Tuesday, well below the record high of $5.016 set in June, according to data from the American Automobile Association, as the driving season summer at the biggest consumer of gasoline is coming to an end.

“Demand is only expected to get worse from here,” said John Kilduff, partner at Again Capital LLC in New York.

News that the restart of BP’s (BP.L) Whiting refinery could begin on Wednesday also had an impact on gasoline prices, Kilduff added.

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Reporting by Arathy Somasekhar in Houston; edited by Jonathan Oatis

Our standards: The Thomson Reuters Trust Principles.

Christi C. Elwood