Global Oil Glut Fears Weigh on Crude Prices

Core Insights - Crude oil and gasoline prices are experiencing declines, with crude reaching a 1.5-week low and gasoline a 2-week low, primarily due to a stronger dollar and concerns over a global oil glut [2][3] - Trafigura forecasts a "super glut" in the global oil market next year, driven by new supply outpacing sluggish demand, which is negatively impacting crude prices [3] - Saudi Aramco's recent price cut for Arab Light crude oil indicates weakened energy demand, marking the lowest price since January 2021 [4] Market Dynamics - Geopolitical tensions, particularly involving Russia and Ukraine, are providing some support to crude prices despite overall bearish trends [5] - Russian crude exports have significantly decreased, with shipments falling to 1.7 million barrels per day (bpd) in early November, the lowest in over three years, due to ongoing conflicts and new sanctions [6] - The closure of key oil export routes, such as the Caspian Pipeline Consortium, further constrains Russian oil exports, impacting global supply dynamics [6]