Dollar Surges, Energy Prices Plummet on Geopolitical Whispers

Crude oil and gasoline futures experienced a significant downturn, with gasoline prices reaching a one-and-a-half-week low. This decline was largely influenced by a strengthening dollar, which climbed to a 1.5-week high, typically acting as a headwind for energy commodities. Added to market pressure were unconfirmed reports suggesting the Trump administration's secret engagement with Russia on a peace plan for Ukraine, which could reshape geopolitical energy dynamics.

Conflicting signals emerged from inventory data, as the EIA reported a larger-than-expected drop in crude supplies but a rise in gasoline and distillate stockpiles. However, significant support for oil prices stemmed from a sharp decrease in Russian crude exports, falling to 1.7 million barrels per day in early November, the lowest in over three years. This reduction is a direct consequence of Ukrainian drone attacks on Russian refineries, impacting as much as 20% of Russia's refining capacity.