Crude oil and gasoline prices closed down on Wednesday due to energy demand concerns. US housing starts and building permits reports were weaker than expected, impacting the economy and energy demand. However, losses were limited as EIA crude inventories and gasoline supplies fell more than expected.

Ukraine’s attacks on Russian refineries and oil infrastructure have boosted crude prices by curbing Russian crude exports. Russian oil infrastructure, including the Transneft Pipeline and Kirishi refinery, have been damaged by Ukrainian drone attacks. This has led to a decrease in Russian crude-processing runs and tightened global oil supplies.

Crude prices have support amid concerns that the war in Ukraine could result in additional sanctions on Russian energy exports. President Trump threatened new economic sanctions against Russia and proposed tariffs on China and India for purchasing Russian oil. This pressure could reduce global oil supplies and impact crude prices positively.

A decrease in crude oil stored on tankers and OPEC+ agreeing to raise crude production are bullish for oil prices. OPEC+ plans to gradually restore 2.2 million bpd of production by September 2026. However, concerns about a global oil glut remain after the IEA increased its 2026 global crude surplus estimate.

The weekly EIA report showed mixed results for crude and products, with distillate stockpiles rising to an 8-month high. However, crude inventories unexpectedly fell, and gasoline supplies decreased to a 9-month low. US crude oil production slightly decreased, while the number of active US oil rigs rose slightly above a 4-year low.

Read more at Yahoo Finance.: Energy Demand Concerns Undercut Crude Prices