On Wednesday, February WTI crude oil closed down $0.03 (-0.05%) at $XX per barrel, while February RBOB gasoline rose $0.0040 (+0.23%). Earlier in the week, crude prices rallied amid concerns over oil risks involving Venezuela and Ukraine-Russia, supported by Baker Hughes reporting that active US oil rigs fell to a 4.25-year low of 406 rigs.
Recent developments include President Trump’s order for a complete blockade of all sanctioned oil tankers in and around Venezuela, and a US Coast Guard operation that boarded the Centuries tanker. Additionally, Ukraine’s drone attacks have targeted at least 28 Russian refineries in the past three months, reducing Russia’s crude oil exports.
According to the EIA, US crude oil inventories as of December 12 were 4.0% below the seasonal 5-year average, with production declining slightly to 13.843 million bpd. The Baker Hughes report indicated a slight recovery in active US oil rigs, increasing by 3 to a total of 409 rigs.
