Crude prices are up, in part, on new U.S. sanctions on Russian oil. But sanctions have proven not be a good reason to invest. And the U.S., in particular, is awash in oil, keeping gas prices down.

Further near-term declines in Cushing stocks would likely put more upward pressure on crude spread — the difference between the front month contract and subsequent months.

U.S. crude oil stocks excluding the Strategic Petroleum Reserve (SPR) fell last week to their lowest since April 2022 as exports rose and imports fell, the Energy Information Administration (EIA) said on Wednesday.

US drivers could see lower gas prices this year and next as oil supply outpaces demand. The US will continue to ramp up output from record levels, the EIA said.