Crude Oil Sees Support from Preliminary US-China Trade Deal

Core Insights - Crude oil prices are experiencing upward momentum due to economic optimism following a preliminary US-China trade agreement and support from geopolitical tensions involving Ukraine and Russia [1][3][6] Group 1: Price Movements - December WTI crude oil is up by +0.23 (+0.37%) and December RBOB gasoline is up by +0.0058 (+0.31%) [1] - Crude oil stored on tankers stationary for at least 7 days increased by +12% week-over-week to 89.75 million barrels as of October 24 [2] Group 2: Geopolitical Factors - Increased US and EU sanctions on Russian energy infrastructure are providing support for crude oil prices, with the US sanctioning major producers Rosneft and Lukoil due to the ongoing conflict in Ukraine [3] - Ukraine's military actions targeting Russian refineries have further limited Russia's crude export capabilities, contributing to a tighter supply [6] Group 3: Supply Dynamics - Concerns about a global supply glut are present, with the IEA forecasting a record global oil surplus of 4.0 million barrels per day (bpd) by 2026 [4] - OPEC+ has agreed to a modest increase in crude production targets, with a 137,000 bpd increase starting in November, which is below market expectations [5] - OPEC's crude production rose by +400,000 bpd to 29.05 million bpd, marking the highest level in 2.5 years [5]