Crude oil and gasoline prices rose on Friday, recovering from Thursday’s selloff as geopolitical risks in Iran supported prices. The US is boosting its military presence in the Middle East, although the chance of immediate intervention has lessened. Short covering in crude futures was reported as US military assets moved towards the Middle East. Unrest in Iran, OPEC’s fourth-largest producer, has caused protests against the government, leading to potential disruptions in crude production. Additionally, drone attacks near the Caspian Pipeline Consortium terminal have reduced crude loadings. Chinese crude demand is strong, with record imports in December. OPEC+ has paused production increases due to a global oil surplus. Ukrainian attacks on Russian refineries and tankers have impacted global oil supplies. The IEA projects a record global oil surplus for 2026. The EIA raised its 2026 US crude production estimate, while US inventories show fluctuations. The number of active US oil rigs has risen slightly.

Read more at Yahoo Finance: Iran Tensions Underpin Crude Oil Prices