January WTI crude oil (CLF26) on Wednesday closed up +0.67 (+1.21%), and January RBOB gasoline (RBF26) closed up +0.0134 (+0.80%).

Crude oil and gasoline prices rose on Wednesday amid heightened geopolitical risks in Venezuela and Russia.  President Trump ordered a blockade of sanctioned tankers off Venezuela, and the US is preparing new sanctions on Russian energy exports if Russia rejects a peace deal to end the war in Ukraine.  Crude prices fell back from their best level on Wednesday after weekly EIA crude inventories fell less than expected and gasoline supplies rose more than expected.

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Crude prices jumped on Wednesday amid an escalation in global geopolitical tensions.  President Trump late Tuesday night ordered a “total and complete blockade of all sanctioned oil tankers” going into and leaving Venezuela.  Also, the US is considering ratcheting up sanctions on Russian energy exports and targeting Russia’s shadow fleet of oil tankers and traders who facilitate its exports if President Putin rejects a proposed peace agreement with Ukraine.

On Tuesday, crude oil and gasoline prices slumped to 4.75-year nearest-futures lows amid concerns about global energy demand and expectations for a worldwide oil glut.  

Weakness in the crude crack spread is a negative factor for oil prices.  The crack spread fell to a 6-month low on Wednesday, discouraging refiners from purchasing crude oil and refining it into gasoline and distillates.

Vortexa reported Monday that crude oil stored on tankers that have been stationary for at least 7 days rose +5.1 w/w to 120.23 million bbl in the week ended December 12.

Ukrainian drone and missile attacks have targeted at least 28 Russian refineries over the past three months, exacerbating a fuel crunch in Russia, limiting Russia’s crude export capabilities and lowering global crude supplies.  Also, new US and EU sanctions on Russian oil companies, infrastructure, and tankers have also curbed Russian oil exports.

Crude also garnered support after OPEC+ on November 30 said it would stick to plans to pause production increases in Q1

January WTI crude oil (CLF26) on Wednesday closed up +0.67 (+1.21%), and January RBOB gasoline (RBF26) closed up +0.0134 (+0.80%).

Crude oil and gasoline prices rose on Wednesday amid heightened geopolitical risks in Venezuela and Russia.  President Trump ordered a blockade of sanctioned tankers off Venezuela, and the US is preparing new sanctions on Russian energy exports if Russia rejects a peace deal to end the war in Ukraine.  Crude prices fell back from their best level on Wednesday after weekly EIA crude inventories fell less than expected and gasoline supplies rose more than expected.

Don’t Miss a Day: From crude oil to coffee, sign up free for Barchart’s best-in-class commodity analysis.

Crude prices jumped on Wednesday amid an escalation in global geopolitical tensions.  President Trump late Tuesday night ordered a “total and complete blockade of all sanctioned oil tankers” going into and leaving Venezuela.  Also, the US is considering ratcheting up sanctions on Russian energy exports and targeting Russia’s shadow fleet of oil tankers and traders who facilitate its exports if President Putin rejects a proposed peace agreement with Ukraine.

On Tuesday, crude oil and gasoline prices slumped to 4.75-year nearest-futures lows amid concerns about global energy demand and expectations for a worldwide oil glut.  

Weakness in the crude crack spread is a negative factor for oil prices.  The crack spread fell to a 6-month low on Wednesday, discouraging refiners from purchasing crude oil and refining it into gasoline and distillates.

Vortexa reported Monday that crude oil stored on tankers that have been stationary for at least 7 days rose +5.1 w/w to 120.23 million bbl in the week ended December 12.

Ukrainian drone and missile attacks have targeted at least 28 Russian refineries over the past three months, exacerbating a fuel crunch in Russia, limiting Russia’s crude export capabilities and lowering global crude supplies.  Also, new US and EU sanctions on Russian oil companies, infrastructure, and tankers have also curbed Russian oil exports.

Crude also garnered support after OPEC+ on November 30 said it would stick to plans to pause production increases in Q1