Crude Oil Prices Weakens on Oversupply Concerns

Group 1: Price Movements - January WTI crude oil is down -0.48 (-0.82%) and January RBOB gasoline closed down -0.0239 (-1.34%) [1] - Crude oil and gasoline prices have extended losses, with crude at a 2-week low and gasoline at a 4.75-year nearest-futures low [2] Group 2: Supply and Demand Dynamics - Concerns about a global oil glut are impacting prices, as Trafigura predicts a "super glut" next year due to new supplies and sluggish demand [3] - The EIA inventory report indicated a larger-than-expected drop in crude supplies, but gasoline and distillate stockpiles rose more than anticipated [2] Group 3: Market Influences - The crude crack spread has fallen to a 7-week low, discouraging refiners from purchasing crude oil for refining [3] - Saudi Aramco's decision to cut the price of Arab Light crude oil for Asian customers by 30 cents/bbl for January delivery signals weaker energy demand [4] Group 4: Geopolitical Factors - Geopolitical risks are providing some support for crude prices, with threats from Russian President Putin regarding attacks on ships aiding Ukraine [5] - Recent attacks on Russian tankers and geopolitical tensions in Venezuela are contributing to market volatility [5] Group 5: Russian Oil Exports - Reduced crude exports from Russia are supporting prices, with shipments falling to 1.7 million bpd, the lowest in over 3 years [6] - Ukrainian attacks on Russian refineries and new sanctions from the US and EU are further limiting Russia's crude export capabilities [6]