Crude oil and gasoline prices rose on Friday to 1-month highs, driven by tensions in Iran and positive US economic data. Unrest in Iran, a major OPEC producer, could disrupt crude production. The US economy showed strength with a lower unemployment rate and higher consumer sentiment, supporting energy demand.

The upcoming annual rebalancing of commodity indexes is expected to see increased buying of oil contracts, a bullish factor for crude prices. On the other hand, concerns about energy demand arose as Saudi Arabia cut the price of its Arab Light crude for February delivery for the third consecutive month.

Morgan Stanley predicted a global oil surplus would expand, leading to lower prices. Vortexa reported a decrease in crude oil stored on tankers, while Chinese crude imports are expected to rise in December. OPEC+ decided to maintain its plan to pause production increases in Q1 2026 due to a projected global oil surplus.

Ukrainian attacks on Russian refineries and tankers, along with sanctions on Russian oil companies, have impacted global oil supplies. The IEA forecasts a record surplus in the world crude market for 2026. OPEC revised its global oil market estimate to a surplus in Q3, and the EIA raised its US crude production forecast for 2025.

US crude oil inventories were below the seasonal average, while gasoline inventories were above, and distillate inventories were below. US crude oil production slightly decreased, and the number of active US oil rigs fell. The article was originally published on Barchart.com for informational purposes.

Read more at Yahoo Finance: Crude Oil Settles Sharply Higher as Iranian Protests Escalate