Crude Prices Rise as Global Geopolitical Risks Escalate

Group 1: Price Movements - Crude oil prices increased on Wednesday, with January WTI crude oil closing up by $0.67 (+1.21%) and January RBOB gasoline up by $0.0134 (+0.80%) [1] - Prices rose amid heightened geopolitical risks in Venezuela and Russia, including a blockade of sanctioned tankers by the US [2][3] Group 2: Geopolitical Factors - President Trump ordered a total blockade of all sanctioned oil tankers related to Venezuela, and the US is considering new sanctions on Russian energy exports if a peace deal regarding Ukraine is not accepted by Russia [2][3] - Ukrainian attacks on Russian refineries have limited Russia's crude export capabilities, contributing to a decrease in global crude supplies [6] Group 3: Market Dynamics - Crude oil and gasoline prices had previously slumped to 4.75-year lows due to concerns over global energy demand and expectations of an oil glut [4] - The crude crack spread fell to a 6-month low, discouraging refiners from purchasing crude oil for gasoline and distillate production [4] Group 4: OPEC+ Actions - OPEC+ announced plans to pause production increases in Q1 of 2026, following a production increase of 137,000 barrels per day (bpd) in December [7] - OPEC's crude production decreased by 10,000 bpd to 29.09 million bpd in November, as the organization aims to restore a total of 2.2 million bpd cut earlier [7]