On Tuesday, WTI crude oil and RBOB gasoline prices closed lower, impacted by a strengthening dollar and concerns about energy demand. Morgan Stanley predicts a global oil surplus to expand further, cutting its price forecast. However, Chinese crude demand remains strong. OPEC+ plans to pause production increases in Q1 2026 due to an emerging global surplus.

Ukrainian attacks on Russian refineries and tankers have limited Russia’s crude oil exports. US and EU sanctions on Russian oil companies have also played a role. The IEA projects a record global oil surplus for 2026. OPEC revised its Q3 global oil market estimates to a surplus, with increased US production contributing to the shift.

The EIA is expected to report a decline in crude oil inventories and an increase in gasoline supplies. Last week’s EIA report showed US crude oil inventories below the seasonal average, while gasoline inventories were above it. US crude oil production remains near record highs. Baker Hughes reported an increase in active US oil rigs, recovering from a recent low.

Read more at Yahoo Finance: Crude Prices Retreat on Dollar Strength and Energy Demand Concerns