**Oil Prices Drop Amid Record Supply Surplus**
On Friday, February WTI crude oil closed down by $0.10 (-0.17%), while February RBOB gasoline decreased by $0.0168 (-0.08%), reaching two-week lows due to expectations of a record global supply surplus. The International Energy Agency (IEA) and the US government projected that global production will exceed consumption, forecasting a surplus of 3.815 million barrels per day (bpd) by 2026.
The increase in supply is partly supported by a recent rise in China’s crude imports, expected to rise 10% month-over-month to a record 12.2 million bpd. This week, crude oil stored on tankers increased by 15% week-over-week to 129.33 million barrels as of December 26, reflecting tight market conditions under persistent geopolitical risks from regions like Venezuela and Nigeria. Meanwhile, US crude oil production remained steady at 13.827 million bpd, just below its record high.
