March WTI crude oil (CLH26) closed down by $0.04 (0.06%) on Friday, while March RBOB gasoline (RBH26) dropped $0.0093 (0.46%). The declines followed weaker-than-expected U.S. economic indicators, as Q4 GDP grew by just 1.4%, falling short of the anticipated 2.8%. This slowdown raised concerns about future energy demand.
Amid rising geopolitical risks, particularly regarding Iran, crude prices had previously surged to a 6.5-month high. President Trump is considering military action against Iran to facilitate nuclear negotiations, with potential implications for Iran’s 3.3 million bpd crude production and global oil supply routes. In contrast, Venezuelan crude exports surged to 800,000 bpd in January from 498,000 bpd in December, further contributing to increased global oil supplies.
The latest report from the Energy Information Administration (EIA) revealed that U.S. crude oil inventories as of February 13 were 6.0% below the seasonal five-year average, while gasoline inventories were 3.3% above. U.S. crude production rose marginally to 13.735 million bpd, close to the record high of 13.862 million bpd recorded in November 2022. The number of active U.S. oil rigs remained at 409, slightly above the 4.25-year low.
