On January 12, 2023, January WTI crude oil rose by $0.76 (1.38%), while January RBOB gasoline increased by $0.0166 (0.99%). This price surge follows heightened geopolitical tensions, particularly due to President Trump’s blockade of sanctioned tankers heading to and from Venezuela, and the potential for new U.S. sanctions on Russian energy exports amid ongoing conflicts in Ukraine.
Key data from the U.S. Energy Information Administration (EIA) indicated a smaller-than-expected decrease in crude oil inventories, falling by 1.27 million barrels, compared to the anticipated 2.05 million. Conversely, gasoline supplies surged by 4.81 million barrels, marking a four-month high. As of December 12, U.S. crude oil production declined by 0.1% week-over-week to 13.843 million barrels per day, just below the record high of 13.862 million barrels recorded in early November.
Internationally, Russia’s oil product shipments dropped to 1.7 million barrels per day in early November, the lowest level in over three years, further curtailing crude export capabilities. Meanwhile, OPEC+ has decided to maintain its production pause, with an anticipated surplus in global oil markets projected for Q1 2026.
