Crude Prices Falter after Weekly EIA Inventories Unexpectedly Rise

Core Insights - Crude oil prices have retreated due to an unexpected increase in weekly EIA crude supplies and a rise in the dollar index, while gasoline prices found support from a significant drop in EIA gasoline inventories [2][4] Group 1: Crude Oil Market - December WTI crude oil is down by $0.39 (-0.64%) [1] - OPEC+ plans to increase production by 137,000 barrels per day (bpd) for December but will pause further increases in Q1-2026 due to a projected global oil surplus [5] - OPEC's September crude production rose by 400,000 bpd to 29.05 million bpd, marking the highest level in 2.5 years [5] Group 2: Gasoline Market - December RBOB gasoline is up by $0.0023 (+0.12%) [1] - EIA gasoline inventories have fallen to an 11-year low, providing support for gasoline prices [2] Group 3: Economic Indicators - The US October ADP employment change increased by 42,000, surpassing expectations of 30,000 [3] - The US October ISM services index rose by 2.4 points to 52.4, exceeding expectations and indicating the fastest pace of expansion in 8 months [3] - The Eurozone October S&P composite PMI was revised upward to 52.5, the strongest expansion in nearly 2.5 years [3] - German September factory orders increased by 1.1% month-over-month, stronger than the expected 0.9% [3] Group 4: Market Dynamics - The crude crack spread has risen to a 2.5-month high, encouraging refiners to increase crude purchases for gasoline and distillates [4] - Reports of potential US military strikes on Venezuela, the world's 12th largest oil producer, are providing additional support for oil prices [4]