U.S. gasoline prices poised to drop below $3/gallon ahead of election, analysts say

Crude oil futures ended a rollercoaster week with modest gains as Hurricane Francine’s shutdown of U.S. offshore production offset longer-term concerns about the demand outlook highlighted by cuts to demand forecasts this week by OPEC, the EIA and the Paris-based IEA.

The storm has halted production in the Gulf of Mexico by 732,000 barrels per day, or 42 percent of total production, according to government data, but the U.S. government said on Friday that production at undamaged facilities would resume immediately.

“These reductions Expected to be completed in a short time “Given the importance of shale production to the majority of U.S. production, this is unlikely to cause significant volatility in oil prices in the broader context,” Ritterbusch said, according to Dow Jones.

“When we come back on Monday, everything will be fine, the refineries will be running at 100%, everybody will be back on the platforms, oil will be back, gasoline will be coming out of the refineries, and the market will be in a good place,” the trader said. There is a possibility of exponential regression,” Mizuho’s Robert Yauger said, according to Reuters.

The October NYMEX Crude Oil (CL1:COM) contract closed on Friday. -0.4% November Brent crude oil (CO1:COM) closed Friday at $68.65 a barrel. -0.5% $71.61 per barrel. WTI ended the week up 1.4% and Brent up 0.7%.

Also, RBOB gasoline futures (XB1:COM) rose slightly this week after declining for four consecutive weeks, with the front-month NYMEX October contract rising 1.8% to $1.9302 per gallon.

ETF: (USO), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH), (USOI)

Analysts say U.S. motorists Gasoline prices fall below $3 a gallon It is expected to be released as early as next month, the first in more than three years, just before the November election.

The national average price for regular gasoline was $3.23 a gallon on Friday, down $0.21 from the previous month and $0.62 from a year ago. Data from AAA.

Reuters reported that Patrick de Haan of GasBuddy.com expects average gasoline prices to fall below $3 a gallon in late October or sooner as the summer driving season ends and retailers begin selling cheaper winter fuel in the coming weeks.

According to a survey by Wells Fargo Investment Research, the approval rating of the U.S. president is inversely proportional to gasoline prices, so in theory, lower gasoline prices should favor Democrats in this election.

Energy (NYSEARCA:XLE) was the only S&P sector to post a negative performance, while the Energy Select Sector SPDR Fund ETF -0.5%.

Top 20 Energy and Natural Resources Stock Gains Over the Last 5 Days: Nano Nuclear Energy (NNE) +117.5%NuScale Power (SMR) +38.7%CoolMining (CDE) +37.9%Gatos Silver (GATO) +34.3%New Gold (NGD) +33%First Majestic Silver (AG) +32.4%Endeavor Silver (EXK) +29.4%Silver Crest Metals (SILV) +28.9%Eos Energy Enterprises (EOSE) +25.8%Hecla Mining (HL) +25.1%MAG Silver (MAG) +23.6%ASP Isotopic (ASPI) +23%Novagold Resources (NG) +22.5%ENVX +22%Mesabi Trust (MSB) +21.4%SSR Mining (SSRM) +21.2%Silvercorp Metals (SVM) +21.2%Equinox Gold (EQX) +21.1%Alice Mining (ARMN) +20.2%Solaris Resources (SLSR) +19.7%.

Top 5 decliners in the Energy and Natural Resources sector over the past 5 days: KLX Energy Services (KLXE) -19.4%Methanex (MEOH) -11.1%Green Plains (GPRE) -9%Net Power (NPWR) -8.3%Gran Tierra Energy (GTE) -7.7%.

Source: Barchart.com