Crude oil prices are mixed today, with WTI down slightly and RBOB gasoline up, as hopes for easing tensions in the Middle East due to negotiations between Iran and the US impact the market. Dollar strength is bearish for crude, but limited losses are seen after a bullish EIA report showing a larger-than-expected decrease in crude supplies.

Tensions in the Middle East and upcoming talks between Iran and the US are putting downward pressure on crude prices, with the possibility of easing sanctions on Iran impacting the market. President Trump’s recent comments about US military readiness in the region have also contributed to market volatility.

Support for crude prices comes from President Trump’s announcement of a potential deal with India to stop buying Russian oil in exchange for reduced tariffs. Additionally, increased crude exports from Venezuela are adding to global oil supplies, which is bearish for prices.

Ongoing conflicts, such as the Russia-Ukraine war, are supporting crude prices by maintaining restrictions on Russian crude exports. The IEA has also revised its global crude surplus estimate, and the EIA has adjusted US production and consumption figures for 2026.

Recent reports show a decrease in crude oil stored on tankers and OPEC+’s decision to maintain a production pause through Q1 2026 due to global oil surplus concerns. Ukrainian attacks on Russian refineries and tankers, as well as new sanctions on Russian oil companies, are affecting global oil supplies.

The latest EIA report was mainly bullish for crude and products, with larger-than-expected draws in crude and distillate supplies, along with a decrease in inventories at Cushing. Gasoline stockpiles, however, rose to a 5.5-year high.

US crude oil inventories are below the seasonal 5-year average, while gasoline inventories are above and distillate inventories are below the average. US crude oil production has decreased to a 14-month low, and the number of active US oil rigs remains relatively stable.

Baker Hughes reported on the number of active US oil rigs, which remained unchanged at just above a 4.25-year low. The decline in the number of rigs over the past few years reflects ongoing challenges in the oil industry.

Read more at Yahoo Finance: Crude Prices Little Changed Awaiting US-Iran Negotiations