Core Insights - Crude oil and gasoline prices are experiencing significant declines, reaching 4.75-year lows due to concerns over global energy demand and expectations of an oil glut [2] - The recent drop in the S&P 500 to a 2.5-week low has further dampened economic optimism, negatively impacting energy demand [2] - A potential ceasefire in the Russia-Ukraine conflict could lead to lifted sanctions on Russian energy exports, which would be detrimental to oil prices [4] Economic Indicators - The US unemployment rate increased by 0.1% to a 4-year high of 4.6%, indicating weaker economic conditions [3] - The US S&P manufacturing PMI for December fell by 0.4 to a 5-month low of 51.8, below expectations [3] - The Eurozone S&P manufacturing PMI unexpectedly dropped by 0.4 to 49.2, marking the steepest contraction in 8 months [3] Geopolitical Factors - Increased geopolitical risks in Venezuela are providing some support for crude prices, as US forces have intercepted sanctioned oil tankers [6] - The US is preparing to intercept more Venezuelan oil tankers, which may complicate Venezuela's ability to export oil [6] Market Dynamics - The crude crack spread has fallen to a 6-month low, discouraging refiners from purchasing crude oil for conversion into gasoline and distillates [4] - Crude oil stored on stationary tankers rose by 5.1% week-over-week to 120.23 million barrels, indicating a buildup in supply [5]