Crude Prices Retreat on Dollar Strength and Energy Demand Concerns

Core Insights - Crude oil and gasoline prices experienced a significant decline due to a strengthening dollar and concerns over energy demand, with February WTI crude oil closing down 2.04% and RBOB gasoline down 1.13% [1] - The crude crack spread has fallen to an 11-month low, negatively impacting refiners' purchasing decisions, while Morgan Stanley has revised its crude price forecasts downward for Q1 and Q2 [2] - Chinese crude demand is showing strength, with December imports expected to rise by 10% month-over-month, reaching a record 12.2 million barrels per day [3] - OPEC+ has decided to maintain its production pause in Q1 2026, with a forecasted global oil surplus of 4.0 million barrels per day for 2026, while OPEC's November production saw a slight decrease [4] - Ukrainian attacks on Russian refineries and tankers, along with new sanctions from the US and EU, are limiting Russia's crude oil export capabilities and reducing global oil supplies [5]