Core Insights - Crude oil and gasoline prices experienced modest gains due to easing US-China trade tensions, which are expected to support economic growth and energy demand [1] - A decline in US crude inventories and gasoline supplies reaching an 11-month low contributed to the positive momentum in oil prices [2] - Strength in the global economy, indicated by Eurozone GDP growth and an improved Japan GDP forecast, is bullish for energy demand [3] Group 1 - The extension of the tariff truce between the US and China, along with the rollback of export controls, is expected to enhance energy demand [1] - The unexpected drop in weekly EIA crude inventories and the significant reduction in gasoline supplies have provided upward pressure on prices [2] - The Eurozone's Q3 GDP growth of +0.2% quarter-on-quarter and +1.3% year-on-year exceeded expectations, indicating stronger economic performance [3] Group 2 - Expectations of reduced Russian crude supplies due to US sanctions are supporting oil prices [4] - The US has implemented sanctions on major Russian oil producers, which is expected to limit their export capabilities [4] - Ukrainian attacks on Russian refineries have further constrained Russia's crude export capacity, with shipments dropping to 1.88 million barrels per day, the lowest in over 3.25 years [5]
Crude Prices Supported by Energy Demand Optimism