Crude oil prices rose on Tuesday, recovering from early losses after hawkish remarks from the EU’s top diplomat hinted at tighter sanctions on Russian energy supplies. Signs of US labor market weakness also weighed on markets. Crude prices have support from reduced Russian crude exports and geopolitical risks.

The crude crack spread rose to a 19-month high, boosting crude oil prices as refiners increase purchases. Geopolitical risks, including Iran seizing an oil tanker and US military buildup near Venezuela, also support oil prices. OPEC revised its Q3 global oil market estimates to a surplus, and OPEC+ plans to pause production hikes in Q1-2026.

Vortexa reported a +1.1% increase in crude oil stored on tankers, reaching the highest level since June 2024. EIA weekly crude inventories are expected to decline, and last week’s report showed US crude oil inventories below the seasonal average. The number of active US oil rigs rose slightly, but remains below previous highs.

Read more at Yahoo Finance: Crude Prices Rebound on Hawkish EU Rhetoric Toward Russia