WTI crude oil closed down -1.08% and RBOB gasoline down -1.13% on Monday. Crude oil hit a 1.75-month low, with gasoline at a 4.75-year low due to concerns about global energy demand. Weaker Chinese economic news and a potential Russian-Ukrainian ceasefire also contribute to falling prices.

China’s Nov industrial production slowed to +4.8% y/y, below expectations. Retail sales rose only +1.3% y/y, the smallest increase in 2.75 years. Optimism about ending the war in Ukraine could lead to sanctions on Russian energy exports being lifted, negatively affecting oil prices.

A weak crude crack spread discourages refiners from purchasing oil. Crude stored on tankers rose to 120.23 million bbl. Geopolitical risks in Venezuela support prices, with US forces seizing a sanctioned tanker. Reduced crude exports from Russia and OPEC’s decision to pause production hikes also impact prices.

OPEC+ plans to stick to production pause in Q1 2026 due to global oil surplus. OPEC’s November production dropped to 29.09 million bpd. US crude oil inventories are below seasonal averages, with production nearing record highs. Active US oil rigs rose to 414, slightly above a 4-year low.

Rich Asplund did not have any positions in mentioned securities. The article is solely for informational purposes. Source: Barchart.com.

Read more at Yahoo Finance: Energy Demand Concerns Undercut Crude Oil Prices