Crude oil and gasoline prices increased on Friday, with crude reaching a 2-week high. The S&P 500’s rally to a 5-week high boosted confidence in economic outlook and energy demand. Geopolitical tensions, including threats from Russian President Putin and drone attacks, are supporting prices. Saudi Arabia’s Aramco cut crude prices for Asian customers, signaling weakened energy demand.

Russia’s reduced crude exports are bolstering prices, with oil product shipments at a 3-year low. Ukrainian attacks on Russian refineries and infrastructure have further limited exports. OPEC+ plans to pause production increases in Q1 2026 due to a global oil surplus. Last month, OPEC revised estimates to a 500,000 bpd surplus in Q3. US crude production remains steady.

US oil rigs increased to 413, recovering from a 4-year low. Crude oil stored on tankers rose to the highest level in almost 2.5 years. OPEC’s global oil market estimates shifted from a deficit to a surplus in Q3 due to increased US production. EIA raised its 2025 US crude production estimate. US crude inventories are below seasonal averages.

Read more at Yahoo Finance: Crude Prices Supported by Geopolitical Tensions and Economic Optimism