As of this report, the Brent crude futures contract for February 2026 is priced at $63.23 per barrel, while the WTI crude futures contract for January 2026 stands at $59.55 per barrel.

This week, both crude and refined product inventories increased significantly, now far exceeding seasonal highs. The surplus in total refined product inventories was primarily driven by rising stocks of other oil products in the U.S., while gasoline and diesel inventories remained within seasonal fluctuation ranges. According to the U.S. Energy Information Administration (EIA), other oil products include NGPL and LRG (excluding propane/propylene), kerosene, asphalt, road oil, and estimated stocks of minor products.

Demand indicators remained neutral this week. Global jet fuel demand is expected to rise in the coming week. However, the four-week average of total U.S. refined product supplies declined both sequentially and year-over-year. Winter temperatures in Europe and Asia trended warmer than usual.

Over the past week, refining margins fell in key hubs such as the U.S. Gulf Coast (USGC) and Northwest Europe, while Singapore saw mixed performance.

As of the week ending November 28, onshore crude inventories in the U.S., Japan, and the Amsterdam-Rotterdam-Antwerp (ARA) region increased by 1.2% to 549.6 million barrels. The deficit relative to the five-year average (2018–2019 and 2022–2024) narrowed from 21.2 million barrels to 10.3 million barrels. Including global offshore crude inventories, total crude stocks rose 4.1% to 681.2 million barrels, with the surplus expanding from 20.7 million barrels to 59.1 million barrels.

For the same week, refined product inventories in tracked regions increased 0.7% to 1.0177 billion barrels, with the surplus widening from 39.2 million barrels to 44.9 million barrels. Overall, combined crude and refined product inventories rose 2% to 1.6989 billion barrels, with the surplus expanding from 59.9 million barrels to 104.1 million barrels.

For the week ending December 15, global commercial passenger flight jet fuel demand is projected to grow by 0.08% (5,100 barrels per day) to 6.66 million barrels per day. International passenger departures are expected to see a weekly increase of 1.4% (60,100 barrels per day) in daily jet fuel consumption, while domestic departures will decline 2.2% (54,900 barrels per day) week-over-week.

According to EIA data, the four-week average of total U.S. refined product supplies fell by 42,000 barrels per day to 20.3 million barrels per day for the week ending November 28. Year-over-year, the four-week supply dropped by 109,000 barrels per day, compared with a decline of 10,000 barrels per day in the prior week.

For the week ending December 5, the U.S. dollar index averaged 99.1, down 0.56% from the previous week.

As of the week ending December 2, managed money net positions in Intercontinental Exchange (ICE) products increased by 7.6 million barrels week-over-week to 189.7 million barrels, placing it at the 27th percentile over the past five years (262 weeks).

Over the past week, the one-month volatility skew for both Brent and WTI crude rose. Brent crude options showed a sharp decline in open interest for February $60 put options, while WTI crude options exhibited no unusual activity.