**Crude Oil and Gasoline Prices Decline Amid Weak Retail Sales**
On Tuesday, March WTI crude oil closed at $64.53 per barrel, down 0.62%, while March RBOB gasoline fell to $1.94 per gallon, a decline of 1.32%. The downturn follows stagnant U.S. retail sales in December, which were unchanged month-over-month, contrasting sharply with anticipated growth of 0.4%, indicating potential weakness in consumer spending and economic growth.
Geopolitical tensions, particularly regarding U.S.-Iran relations, are contributing added risk premium to crude prices, as U.S. maritime advisories warn American-flagged ships to avoid Iranian waters in the Strait of Hormuz, a crucial oil transit route. Meanwhile, Venezuela’s crude exports rose significantly to 800,000 barrels per day (bpd) in January from 498,000 bpd in December, further influencing global oil supply dynamics.
In other developments, the U.S. Energy Information Administration (EIA) raised its 2026 crude production estimate to 13.60 million bpd, and the International Energy Agency (IEA) adjusted its global crude surplus forecast down to 3.7 million bpd. The Baker Hughes report indicated that active U.S. oil rigs increased slightly to 412, remaining above December’s low of 406 rigs.
