Crude oil and gasoline prices settled mixed on Friday, with crude rebounding from a 1.5-week low. Crude prices recovered from early losses on Friday and posted modest gains, as a weaker dollar spurred short covering. Crude prices initially fell on Friday amid easing US-Iran tensions and speculation that OPEC+ may soon boost crude production.

Geopolitical risk between the US and Iran has de-escalated after President Trump said negotiations could last up to a month, reducing the possibility of military action in the near term. Some OPEC+ members see the group resuming oil production increases in April, believing concerns of a global supply glut are overblown.

Mounting crude supplies in floating storage are a bearish factor for oil prices, with about 290 million bbl of Russian and Iranian crude currently in floating storage on tankers, more than 50% higher than a year ago. Escalation of geopolitical risk in the Middle East has added a risk premium to crude oil, supporting prices.

An increase in crude exports from Venezuela is also boosting global oil supplies and is bearish for prices. Crude oil has support after Russia said a breakthrough in peace talks with Ukraine is unlikely. The EIA raised its 2026 US crude production estimate and energy consumption estimate.

Vortexa reported a decrease in crude oil stored on tankers that have been stationary for at least 7 days. OPEC+ plans to stick to its production pause through Q1 2026. Ukrainian attacks on Russian refineries and tankers have limited Russia’s crude oil export capabilities. US crude oil inventories are below the 5-year average, while gasoline inventories are above and distillate inventories are below.

Baker Hughes reported a decrease in active US oil rigs to just above a 4.25-year low. The number of US oil rigs has fallen sharply in the past 2.5 years. Rich Asplund did not have positions in the mentioned securities. This article was originally published on Barchart.com.

Read more at Yahoo Finance: Crude Prices Recover on Dollar Weakness