December WTI crude oil closed down -2.14% and RBOB gasoline closed down -3.36% on Wednesday. Both prices fell due to a rally in the dollar index and reports of the Trump administration working with Russia on Ukraine. EIA inventory report showed mixed results, with crude supplies falling more than expected but gasoline and distillate stockpiles rising.

Reduced crude exports from Russia supported oil prices after data showed a significant decline in oil product shipments. Ukraine’s actions against Russian refineries have limited Russia’s export capabilities. Geopolitical risks involving Russia, Iran’s oil tanker seizure, and US military buildup in Venezuela also support oil prices.

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

Crude oil stored on tankers increased to the highest level since June 2024. The EIA report showed a larger-than-expected build in gasoline supplies, unexpected rise in distillate stockpiles, but a larger-than-expected draw in crude inventories. US crude oil production fell slightly from the previous week.

The number of active US oil rigs rose slightly, but remains above a 4-year low. The decline in the number of US oil rigs in recent years is notable. No positions in mentioned securities. Information in the article is for informational purposes only.

Read more at Yahoo Finance: Crude Prices Tumble on Dollar Strength and Easing Geopolitical Risks