Crude oil and gasoline prices are dropping today, with WTI crude at a 4-month low and RBOB gasoline at a 1-year low. OPEC+ plans to increase crude production levels, potentially leading to a global oil supply glut. Dollar strength and US government shutdown concerns are also affecting prices.

OPEC+ is expected to boost output by 2.2 million bpd in three monthly installments starting in November. The IEA forecasts a record surplus of 3.33 million bpd next year. Iraq’s agreement to resume oil exports adds 500,000 bpd to global supplies. India’s reduced crude imports are also impacting prices negatively.

Crude oil stored on tankers has risen by 3.7% to 81.95 million bbl, further pressuring oil prices. Concerns over the conflict in Ukraine potentially leading to sanctions on Russian energy exports is providing some support to prices. Ukraine’s attacks on Russian refineries are curbing exports and tightening global supplies.

US EIA report shows crude oil inventories below 5-year average, with production slightly below record highs. Active US oil rigs rose to 424, still above a 4-year low. All information provided for informational purposes only, no positions held in mentioned securities.

Read more at Yahoo Finance: Crude Prices Extend Slide on Oversupply and Energy Demand Concerns