February WTI crude oil closed up $0.87 on Wednesday, while February RBOB gasoline also gained. Crude reached a 2.5-month high and gasoline a 5-week high during trading.
Unrest in Iran has driven prices higher as thousands of protesters have taken to the streets in many cities. Iranian security forces have killed thousands of protesters. President Trump stated that "help is on the way" and has been briefed on military options. Reuters reported that some US personnel have been advised to leave the Al Udeid Air base in Qatar, a facility targeted by Iran last year. Iran produces over 3 million barrels per day.
Drone attacks on oil tankers near the Caspian Pipeline Consortium terminal on Russia's Black Sea Coast have reduced crude loadings by almost half to around 900,000 barrels per day.
Ukrainian drone and missile attacks have targeted at least 28 Russian refineries over the past four months. Since late November, Ukraine has increased attacks on Russian tankers, with at least six attacked in the Baltic Sea. New US and EU sanctions have also curbed Russian oil exports.
OPEC+ said on January 3 it would stick to its plan to pause production increases in the first quarter of 2026. The group had announced a production increase for December but will pause hikes due to an emerging global oil surplus. OPEC's December crude production rose by 40,000 barrels per day.
China's crude imports in December are set to increase by 10% month-over-month to a record 12.2 million barrels per day, according to Kpler data. Vortexa reported that crude oil stored on stationary tankers fell slightly in the week ended January 9.
The weekly EIA inventory report showed crude inventories unexpectedly rose by 3.39 million barrels. Gasoline supplies increased by 9.98 million barrels to a nearly 1-year high. Distillate stockpiles fell by a smaller amount than expected. Crude supplies at Cushing rose by 745,000 barrels.
US crude oil production in the week ending January 9 was down slightly to 13.753 million barrels per day. Baker Hughes reported the number of active US oil rigs fell by three to 409 rigs last week.