Crude oil and gasoline prices are up today after OPEC+ agreed to a smaller-than-expected increase in production levels. Reduced Russian crude production, following a drone attack at Kirishi oil refinery, is also supporting prices. However, gains are limited as the dollar index rallied to a 1-week high.

OPEC+ agreed to a +137,000 bpd increase in crude production, below market expectations of 500,000 bpd. Reduced Russian crude production due to Ukrainian attacks is exacerbating a fuel crunch in Russia. Ukrainian attacks have curbed Russia’s total refined-product flows to the lowest in over 3.25 years.

Crude oil stored on tankers stationary for over seven days fell by -7% w/w to 82.81 million bbl. Last week, crude oil and gasoline prices hit lows due to OPEC+ production outlook. OPEC’s September production rose to a 2.5-year high, and the IEA projects a record surplus next year.

Global oil market faces a record surplus next year of 3.33 million bpd as OPEC+ revives production. Iraq’s resumption of oil exports from Kurdistan could add 500,000 bpd to global supplies. Concerns over Russian energy exports amid the Ukraine war are pressuring crude prices.

US crude oil inventories were below seasonal averages in the latest EIA report. Crude production remained steady, slightly below record highs. The number of active US oil rigs fell slightly, but remains above a 4-year low.

On the date of publication, Rich Asplund did not have any positions in the securities mentioned. Information in the article is for informational purposes only.

Read more at Yahoo Finance: Crude Prices Push Higher After OPEC+ Agrees to a Modest Production Hike