Crude oil and gasoline prices closed higher on Friday due to a weaker dollar prompting short covering in energy futures. The S&P 500 reaching a new all-time high also boosted confidence in the economic outlook, supporting energy demand. However, concerns over a global supply glut from OPEC+ increasing production levels limited gains in crude prices.

OPEC+ is expected to discuss increasing crude production in monthly installments, aiming to reverse a 2-year production cut and restore 2.2 million bpd. The International Energy Agency projects a record surplus of 3.33 million bpd next year, contributing to pressure on crude prices.

Iraq’s agreement to resume oil exports from the Kurdish region could add 500,000 bpd to global markets, while reduced crude demand from India and an increase in oil held on tankers are bearish for prices. The ongoing war in Ukraine and proposed tariffs on Chinese and Indian oil purchases from Russia could impact global oil supplies. Ukrainian attacks on Russian refineries may tighten oil supplies, and the latest EIA report shows US crude oil inventories below seasonal averages.

Baker Hughes reported a decline in active US oil rigs, indicating a trend of decreasing rigs over the past 2.5 years.

Read more at Yahoo Finance: Crude Prices Settle Higher as the Dollar Slips and Stocks Rally