December WTI crude oil closed down -4.18%, and RBOB gasoline closed down -2.81% on Wednesday. Crude prices fell to a 3-week low after OPEC reported a global crude surplus, while the EIA raised its US crude production estimate. Dollar strength also weighed on prices.

OPEC revised Q3 global oil market estimates from a deficit to a surplus, citing US production surpassing expectations. Saudi Arabia reduced its crude price to Asia, indicating bearish sentiment. Expectations of the US government reopening boosted crude amid economic growth hopes.

Chinese crude demand and potential US military strikes on Venezuela supported oil prices. OPEC+ announced a production increase in December but will halt hikes in Q1-2026 due to a looming global oil surplus. Reduced Russian crude exports and sanctions further impacted oil prices.

Vortexa reported a +11% weekly increase in crude oil stored on stationary tankers. EIA’s upcoming report is expected to show a +1.5 million bbl increase in crude inventories and a -2.5 million bbl decrease in gasoline supplies. US crude production hit a record high of 13.651 million bpd.

Baker Hughes reported a steady number of active US oil rigs at 414, slightly above a 4-year low. US oil rigs have significantly declined from a 5.5-year high in December 2022. No positions were held in mentioned securities. Information provided is for informational purposes only.

Read more at Yahoo Finance: Crude Prices Plummet on OPEC Projections for a Global Crude Surplus