December WTI crude oil closed lower on Tuesday, influenced by a stronger dollar and a drop in equity markets. OPEC+ announced a pause in crude production hikes for Q1, providing some support. The crude crack spread hit a 2.5-month high, boosting refining activity. Oil prices also rose on potential US military strikes in Venezuela.

OPEC+ members plan to raise production by 137,000 bpd in December but will halt increases in Q1 2026 due to a global oil surplus. Reduced crude exports from Russia, due to Ukrainian attacks, are also impacting prices. US and EU sanctions further limit Russian oil exports. Crude oil stored on tankers fell by 11% last week.

The consensus is that EIA crude inventories fell by 286,000 bbl, and gasoline supplies dropped by 1.8 million bbl. Last week’s EIA report showed US crude oil inventories below the 5-year average. Baker Hughes reported a decrease in active US oil rigs to 414, still above a recent low.

Read more at Yahoo Finance: Crude Prices Slip on Dollar Strength and Stock Weakness