Crude oil and gasoline prices fell today, with crude hitting a 2-week low and gasoline at a 4.75-year low due to concerns about a global oil glut. Prices remained low after an EIA inventory report showed crude supplies decreased more than expected while gasoline and distillate stockpiles rose.

A global oil supply cut could lead to a “super glut” next year, according to commodities trader Trafigura, further pressuring oil prices. Weakness in the crude crack spread discourages refiners from purchasing crude oil. Saudi Arabia’s price cut for Arab Light crude also contributed to lower prices.

Geopolitical risks support crude prices as Russian President Putin threatened to attack ships aiding Ukraine. Recent drone attacks on Russian tankers and President Trump’s remarks on Venezuela also impact oil prices. Reduced crude exports from Russia, due to various incidents, are also affecting the market.

OPEC+ decided to pause production increases in Q1 2026 to address the global oil surplus. The IEA forecasts a record global oil surplus of 4.0 million bpd for 2026. OPEC’s efforts to restore production cuts made in early 2024 are ongoing, with November production falling slightly.

Vortexa reported a decrease in crude oil stored on tankers, adding some support to prices. The weekly EIA report showed mixed results, with larger-than-expected builds in gasoline and distillate inventories, but a larger drawdown in crude inventories. US production remains near record highs.

US oil rigs increased by 6 to 413, rebounding from a recent low. The number of active rigs has dropped significantly in recent years. No positions were held in the mentioned securities by Rich Asplund. The information in the article is for informational purposes only.

Read more at Yahoo Finance: Crude Oil Prices Weakens on Oversupply Concerns