Crude oil and gasoline prices closed mixed on Monday, with crude falling to a 1-week low due to the outlook for additional global oil supplies. Gasoline prices rose on dollar weakness and a rally in the S&P 500. Iraq’s agreement to resume Kurdish oil exports could add 230,000 bpd to global markets.

India’s reduced crude demand is negative for oil prices, with August crude imports falling 2.9% y/y to 19.6 MMT. There is an increase in crude oil held worldwide on tankers, with Vortexa reporting a 14% w/w rise to 74.18 million bbl. Ukraine’s attacks on Russian refineries tighten global oil supplies.

Crude prices are supported by concerns over the war in Ukraine leading to sanctions on Russian energy exports. President Trump threatened new sanctions against Russia, and the US proposed tariffs on China and India for buying Russian oil. OPEC+ agreed to raise crude production by 137,000 bpd in October, gradually restoring 2.2 million bpd by 2026.

The EIA report showed US crude oil inventories below the seasonal 5-year average, with production falling slightly. Baker Hughes reported an increase in active US oil rigs to 418, just above a 4-year low. This article is for informational purposes only.

Read more at Yahoo Finance: Crude Prices Pressured as Global Oil Supply Situation Improves