Risk-On Sentiment in Asset Markets Lifts Crude Prices

Core Insights - Crude oil and gasoline prices have shown recovery from early losses, indicating bullish confidence in economic outlook and energy demand, while geopolitical factors continue to influence market dynamics [2][4] Group 1: Price Movements - January WTI crude oil closed up by 1.34%, while January RBOB gasoline increased by 0.64% [1] - Crude oil stored on stationary tankers rose by 9.7% week-over-week to 114.31 million barrels, marking the highest level in 2.25 years [6] Group 2: Geopolitical Factors - Reduced crude exports from Russia have been reported, with shipments falling to 1.7 million barrels per day (bpd) in the first half of November, the lowest in over three years [3] - Ongoing geopolitical risks related to Russia and potential US military actions in Venezuela are providing underlying support for oil prices [4] Group 3: Market Supply Dynamics - OPEC revised its Q3 global oil market estimates from a deficit to a surplus, now projecting a 500,000 bpd surplus due to increased US production and OPEC output [7] - New US and EU sanctions on Russian oil companies and infrastructure have further limited Russian oil exports [3]