Rising Global Geopolitical Tensions Lift Crude Prices

Group 1 - Crude oil and gasoline prices are rising due to heightened geopolitical risks in Venezuela and Russia, with President Trump ordering a blockade of sanctioned tankers off Venezuela and the US preparing new sanctions on Russian energy exports [2][3] - The crude crack spread has fallen to a 6-month low, which is discouraging refiners from purchasing crude oil for refining into gasoline and distillates [4] - Reduced crude exports from Russia are supporting crude prices, with shipments falling to 1.7 million barrels per day (bpd) in early November, the lowest in over three years, due to Ukrainian attacks and new sanctions [5] Group 2 - Crude oil stored on tankers that have been stationary for at least 7 days rose by 5.1% week-over-week to 120.23 million barrels, indicating a potential oversupply in the market [4] - The Caspian Pipeline Consortium, which carries 1.6 million bpd of Kazakhstan's crude exports, was forced to close due to pipeline damage, further impacting global crude supply [5] - New US and EU sanctions on Russian oil companies and infrastructure have also contributed to the reduction in Russian oil exports [5]