X
<

Triggers for a Massive Recovery in Crude Oil Prices in 6 Weeks

PART:
1 2 3 4 5 6
Triggers for a Massive Recovery in Crude Oil Prices in 6 Weeks PART 1 OF 6

Crude Oil Prices: Important Triggers for a Recovery

Crude oil prices  

February WTI (West Texas Intermediate) crude oil (PXI) (USL) (IEZ) (ERY) (IYE) futures contracts rose 2.8% and settled at $52.25 per barrel on January 11, 2017. Brent crude oil futures also rose 2.7% and closed at $55.1 per barrel on January 11, 2017. Crude oil prices recovered from one-month lows due to the following factors:

Crude Oil Prices: Important Triggers for a Recovery

Interested in BNO? Don't miss the next report.

Receive e-mail alerts for new research on BNO

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Major oil producers’ production cut plans  

OPEC (Organization of the Petroleum Exporting Countries) and non-OPEC producers agreed to cut crude oil production by 1.8 MMbpd (million barrels per day) starting in January 2017. As a result, crude oil (BNO) (USO) (UCO) (RYE) (PXI) (XOP) (USL) (ERX) rose ~23% since November 2016.

Higher crude oil prices have a positive impact on oil and gas producers’ earnings like ExxonMobil (XOM), SM Energy (SM), ConocoPhillips (COP), and Sanchez Energy (SN).

Russia’s energy ministry reported that Russia’s crude oil production fell to 11.03 MMbpd in the first eight days of January 2017—compared to 11.11 MMbpd for the same period in December 2016. Slowing production supports oil prices.

US crude oil inventories 

The EIA (U.S. Energy Information Administration) released its weekly crude oil inventory report on January 11, 2017. We’ll look at US crude oil inventories and their regional breakdown in Part 2 of this series.

Series focus   

In this series, we’ll look at US crude oil production, refinery demand, imports, and inventories. We’ll also look at gasoline and distillate inventories.

We’ll start by looking at US crude oil prices in early morning trade on January 12, 2017.

X

Please select a profession that best describes you: