Dollar Weakness and Falling Russian Energy Exports Support Crude Prices

Core Insights - Crude oil and gasoline prices have reached 1.5-week highs, driven by a decline in the dollar index and concerns over Russian oil exports due to increased Ukrainian drone attacks [2][3] - The ongoing conflict in Ukraine is tightening global oil supplies, with significant damage to Russian oil infrastructure impacting crude processing rates [3][6] Price Movements - October WTI crude oil is up by 1.08 (+1.71%) and October RBOB gasoline is up by 0.0209 (+1.04%) [1] - A decrease in crude oil stored on tankers, which fell by 7.2% week-over-week to 67.96 million barrels, is also supporting oil prices [5] Economic Indicators - Strong US economic data, including a 0.6% month-over-month increase in retail sales and a 0.2% rise in manufacturing production, is bullish for energy demand and crude prices [4] Geopolitical Factors - The war in Ukraine is leading to potential new sanctions on Russian energy exports, which could further reduce global oil supplies [6] - Recent drone attacks on Russian refineries have significantly curtailed crude-processing runs to 4.98 million barrels per day, marking the lowest monthly average in over 3.25 years [3]