**Crude Oil Market Update**
On October 20, 2023, WTI crude oil closed down by $0.13 (-0.16%) at $XXX, while RBOB gasoline increased by $0.0598 (+2.00%). The dollar index reaching a two-week high and increased oil supplies from the Strait of Hormuz contributed to the bearish sentiment for crude oil prices. Goldman Sachs estimates that oil exports from the Persian Gulf rose to 15-16 million barrels per day, about two-thirds of pre-war levels.
Amid ongoing geopolitical tensions, the International Energy Agency (IEA) warns of a worsening global oil supply deficit. Russia’s crude production has dropped to 8.89 million bpd in July, its lowest in six years, due to intensified drone attacks from Ukraine. Additionally, OPEC has restored its full supply cut, increasing production by 188,000 bpd for September.
In the U.S., crude oil inventories increased by 1.3% above the seasonal five-year average, while active oil rigs fell by five to 447, modestly below a 1.25-year high of 455 rigs reported on August 14.
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