January WTI crude oil (CLF24) on Tuesday closed up +0.97 (+1.34%), and Jan RBOB gasoline (RBF24) closed up +4.18 (+1.94%).
Crude oil and gasoline prices on Tuesday settled moderately higher but remained below Monday's 2-week highs. A weaker dollar on Tuesday was bullish for energy prices. Also, geopolitical risks supported higher crude prices after several major oil shippers stopped shipping crude oil through the Red Sea because of attacks on ships in the region. In addition, Tuesday's rally in the S&P 500 to a 23-month high shows confidence in the economic outlook that supports energy demand and crude prices. Finally, fund short covering lifted crude prices as Tuesday is the last trading day for the Jan WTI crude oil contract.
