Oil prices fell on Wednesday, with WTI crude closing down -1.59% and RBOB gasoline down -0.70%. Prices dropped to a 2-week low after EIA reported a surprising increase in crude supplies. A rally in the dollar index also added pressure, but positive global economic news supported energy demand. Gasoline inventories hit an 11-year low.

Global economic news was positive, with the US Oct ADP employment change beating expectations and Eurozone PMI showing strong expansion. A rise in the crude crack spread supported prices, encouraging refiners to increase crude purchases. Reports of potential US military strikes on Venezuela also boosted prices.

OPEC+ announced a production increase of 137,000 bpd for December, pausing hikes in Q1-2026 due to an emerging oil surplus. Reduced crude exports from Russia supported prices, with Ukrainian attacks limiting Russia’s export capabilities. Crude oil stored on tankers fell by 11%, and EIA inventories showed mixed results, with a draw in gasoline supplies.

US crude oil production hit a record high, while active oil rigs in the US fell to 414 rigs. New US and EU sanctions on Russian oil companies have curbed exports. The oil market continues to be influenced by geopolitical tensions and supply dynamics.

Read more at Yahoo Finance: Crude Prices Tumble as EIA Crude Inventories Build