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On November 7, 2023, December WTI crude oil closed at $58.83, up 0.34%, while December RBOB gasoline rose 0.22% to $1.9654. This increase follows a significant sell-off on Wednesday, driven in part by a decline in the dollar index and the reopening of the U.S. government, which bolsters economic growth and energy demand. However, gains were limited due to EIA reports indicating crude inventories rose by 6.41 million barrels, exceeding the expected 1.5 million barrels, and U.S. oil production reached a record high of 13.862 million bpd.
OPEC revised its Q3 global oil market estimates from a deficit to a surplus of 500,000 bpd, while Saudi Arabia lowered its main crude price to Asia to the lowest level in 11 months. Additionally, Ukrainian actions have targeted Russian refineries, resulting in diminished Russian oil exports, which supports oil prices. The EIA also noted that U.S. crude inventories were 4.1% below the seasonal five-year average, with gasoline supplies 4.0% lower and distillate inventories 7.9% below.
Baker Hughes reported that the number of active U.S. oil rigs remained unchanged at 414, slightly above the four-year low of 410 set on August 1, reflecting a sharp decline from the 5.5-year high of 627 rigs in December 2022.
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