Crude oil and product market futures took a large hit on Wednesday on signs of a global glut. January WTI crude oil traded $2.63 cents lower to $58.36 a barrel, the lowest close since Oct. 21. 

Prices have been trading in a wide sideways range since this spring and summer. Recently, the crude oil market had been fighting to hold above the $60 level amid bearish fundamentals. Prices have been under pressure from rising OPEC supplies. Additionally, the Energy Information Administration continued to raise its U.S. crude oil production forecast to 13.58 million barrels a day for 2026, up from the previous estimate of 13.51 million. 

Meanwhile, U.S. diesel supplies are expected to get tighter this year to 115.5 million barrels, down nearly 15 million from 2024 and about 4 percent lower than the EIA’s initial forecast.

Refinery companies are expected to earn better margins due to cheaper crude and higher diesel prices. The EIA reported that diesel margins are about 33 percent higher than a year ago at 69 cents. Profits could reach 84 cents in 2026, the EIA said.

—

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.