Crude oil and gasoline prices dropped today, with crude oil hitting a 1.75-month low and gasoline at a 4.75-year low. Weak Chinese economic data contributed to the decline, along with a decrease in the S&P 500 and the potential for a Russian-Ukrainian ceasefire.

China’s industrial production and retail sales numbers for November were weaker than expected, indicating reduced energy demand and negatively impacting crude oil prices.

Talks between the US and Ukraine about ending the war with Russia could lead to sanctions on Russian energy exports being lifted, which would further lower oil prices.

The crude crack spread hit a 2.25-month low, discouraging refiners from buying crude oil for processing into gasoline and distillates.

Crude oil stored on tankers stationary for at least 7 days increased by +5.1 w/w to 120.23 million bbl in the week ended December 12, according to Vortexa.

Geopolitical risks in Venezuela and reduced crude exports from Russia have supported crude prices. The US recently seized a sanctioned Venezuelan oil tanker, making it harder for Venezuela to export oil.

OPEC+ announced plans to pause production increases in Q1 of 2026 due to an emerging global oil surplus, with the IEA forecasting a record surplus of 4.0 million bpd for 2026.

US crude oil inventories were below seasonal averages, and US crude oil production rose to 13.853 million bpd in the week ending December 5, just below the record high.

The number of active US oil rigs rose by +1 to 414 rigs in the week ending December 12, slightly above the 4-year low reported at the end of November.

Read more at Yahoo Finance: Crude Prices Fall on Signs of Weak Chinese Energy Demand