Crude oil and gasoline prices rose on Tuesday due to concerns over the Middle East conflict widening. Israel’s strike in Qatar targeting Hamas leaders and Ukraine’s attacks on Russian refineries contributed to the increase. Dollar strength limited crude price gains.

Geopolitical tensions in the Middle East escalated as Israel targeted Hamas leaders in Qatar. This action violated international law and threatened to expand the conflict, affecting global oil supplies. OPEC+ agreed to a smaller increase in crude production for October, contingent on market conditions.

Russian crude output reduction tightened global oil supplies, with Ukrainian attacks on Russian refineries leading to decreased production. Concerns over the war in Ukraine potentially triggering sanctions on Russian energy exports have supported crude prices. Saudi Arabia’s price cut and increased oil storage on tankers are bearish factors.

OPEC+ boosting output to reverse production cuts is a negative factor for crude prices. The group plans to restore 2.2 million bpd of production by 2026, with 1.66 million bpd remaining offline. OPEC’s August production rose to 28.55 million bpd, the highest in over two years. EIA data showed a decline in crude inventories and a rise in gasoline supplies.

US oil rig count slightly increased, nearing a 4-year low. Crude oil inventories are below seasonal averages, while OPEC production rises. EIA reports indicate falling US crude oil production, with inventories below average. Weekly EIA data and Baker Hughes rig count suggest a complex outlook for oil markets.

Read more at Yahoo Finance: Crude Prices Gain as Middle Eastern Geopolitical Risks Rise