Crude Prices Gain on Prospects of Smaller Russian Crude Exports

Core Insights - Crude oil and gasoline prices increased due to concerns over declining Russian oil exports, which may limit global oil supplies [2][4] - The US proposed imposing tariffs up to 100% on China and India for purchasing Russian oil to pressure Russia regarding the Ukraine conflict [2] - Geopolitical tensions, including Ukrainian drone attacks on Russian infrastructure and military actions in the Middle East, are contributing to bullish sentiment in crude oil prices [5] Price Movements - October WTI crude oil closed up by $0.32 (+0.51%) and October RBOB gasoline closed up by $0.0061 (+0.31%) [1] - The S&P 500's rally to a new record high indicates confidence in the economic outlook, which supports energy demand and crude prices [2] Supply Dynamics - Reduced Russian crude output is tightening global oil supplies, with processing runs dropping to 5.09 million barrels per day (bpd) in August, the lowest in over 3.25 years [4] - Ongoing geopolitical risks in Europe and the Middle East are expected to further support crude prices [5] Economic Indicators - A stronger dollar and a decline in the University of Michigan US consumer sentiment index to 55.4, a four-month low, are limiting gains in crude prices [4]