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On Thursday, December WTI crude oil closed down $0.17 (-0.29%) at $____, reaching a two-week low, while December RBOB gasoline closed up $0.0563 (+2.95%) at $____. Demand concerns have increased following Saudi Arabia’s decision to cut the price of its main crude grade by $1.20 a barrel for December delivery to Asia, the lowest level in 11 months. The U.S. Energy Information Administration (EIA) reported a surprise increase in crude supplies, exacerbating the pressure on oil prices.
OPEC+ announced on Sunday it will raise output by 137,000 barrels per day (bpd) for December, but will pause future increases due to a projected global oil surplus, which is expected to reach 4.0 million bpd in 2026. Meanwhile, Ukrainian attacks on Russian refineries have significantly disrupted Russia’s crude exports, dropping total seaborne shipments to 1.88 million bpd in early October, the lowest in over three years.
As of October 31, U.S. crude oil inventories were 5.3% below the seasonal five-year average, while gasoline and distillate inventories were down by 4.3% and 8.8%, respectively. U.S. crude production increased to a record high of 13.651 million bpd, despite the number of active U.S. oil rigs falling to 414, slightly above a four-year low.
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