On Friday, January WTI crude oil and RBOB gasoline prices fell due to dollar strength and stock market weakness. Gasoline hit a 4.75-year low. Concerns about a global oil glut from new supply and weak demand also weighed on prices.

Global oil supply concerns persist as Trafigura predicts a “super glut” next year. A drop in the crude crack spread discourages refiners from purchasing crude for gasoline production.

Geopolitical risks in Venezuela and Russia-Ukraine conflict support crude prices. US seizing sanctioned tankers in Venezuela and Russian President Putin’s threats add to the tension.

Russian crude exports are reduced due to attacks on refineries and tankers. New US and EU sanctions on Russian oil companies have limited exports.

OPEC+ plans to pause production increases in Q1 2026 due to a global oil surplus. IEA forecasts a 4.0 million bpd surplus in 2026. OPEC aims to restore production cuts made in 2024.

US crude oil inventories are below the 5-year average. Crude oil stored on tankers decreased, while US production rose. The number of active US oil rigs increased.

Author Rich Asplund had no positions in mentioned securities. All information in the article is for informational purposes only.

Read more at Yahoo Finance: Dollar Strength and Stock Market Weakness Undercut Crude Oil Prices