Today, December WTI crude oil and RBOB gasoline prices are sharply lower, with the dollar index rising to a 1.5-week high. Energy prices are also under pressure from reports of secret US-Russia collaboration to end the war in Ukraine. Despite a mixed EIA inventory report, crude prices remain lower.

Oil prices are supported by reduced crude exports from Russia, Ukraine’s targeting of Russian refineries, and new US and EU sanctions on Russian oil companies. Geopolitical risks from Iran seizing an oil tanker and US military buildup in Venezuela also contribute to oil price support.

OPEC revised its Q3 global oil market estimates from a deficit to a surplus due to increased US production and OPEC’s higher crude output. EIA raised its 2025 US crude production estimate. OPEC+ announced a pause in production hikes due to an emerging global oil surplus.

Vortexa reported a rise in crude oil stored on tankers, reaching the highest level since June 2024. The weekly EIA report showed mixed results for crude oil and products, with larger-than-expected builds in gasoline and distillate stockpiles. However, crude inventories fell more than expected.

US crude oil inventories were below the seasonal 5-year average, with gasoline and distillate inventories also below average. US crude oil production slightly decreased from the prior week. Baker Hughes reported an increase in active US oil rigs, above a 4-year low set in August.

Rich Asplund did not have positions in the mentioned securities. The information provided is for informational purposes only. This article was originally published on Barchart.com.

Read more at Yahoo Finance: Crude Prices Retreat on Dollar Strength and Possible Ukraine Peace Deal