Crude oil and gasoline prices are up today, supported by confidence in the economic outlook and a smaller-than-expected increase in OPEC+ production levels. However, gains are limited due to a strengthening dollar. Weekly EIA inventory report showed mixed results, with higher crude inventories but lower gasoline and distillate supplies.

OPEC+ agreed on a modest increase in crude production, below market expectations. Saudi Arabia’s decision to keep oil prices unchanged for Asian customers was seen as a bearish sign for crude prices. Meanwhile, reduced crude production in Russia due to attacks on refineries is supportive for oil prices.

A decrease in crude oil stored on tankers is bullish for oil prices. On the other hand, higher crude production in Iraq is expected to increase global oil supplies, putting pressure on crude prices. Concerns about additional sanctions on Russian energy exports due to the war in Ukraine also support crude prices.

The weekly EIA report showed mixed results, with larger draws in gasoline and distillate supplies but a larger-than-expected increase in crude inventories. US crude oil production remains near record highs, while the number of active US oil rigs has declined in recent years.

Read more at Yahoo Finance: Crude Prices Rally on Energy Demand Optimism