Crude Oil Prices Hit a 19-Month High
Crude oil prices
April WTI (West Texas Intermediate) crude oil (ERX) (PXI) (ERY) futures contracts rose 0.8% and were trading at $54.2 per barrel in electronic trade at 3:25 AM EST on February 21, 2017. US markets were closed on February 20, 2017, due to the President Day holiday. Broader markets like the S&P 500 (SPY) (SPX-INDEX) and Dow Jones (DJIA-INDEX) rose 0.2% and 0.02%, respectively, on February 17, 2017.
US crude oil prices hit a 19-month high of $54.24 per barrel in electronic trade on February 20, 2017, due to the following:
- investors’ optimism due to hedge funds’ record net-long positions on WTI crude oil contracts
- possible extension of major oil producers’ production cut deal
- high oil demand from China, India, and Asia.
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However, crude oil prices’ upside could be limited due to the following:
- strong US dollar
- high Cushing crude oil inventories
- record OECD (Organisation for Economic Cooperation and Development) crude oil inventories
- expectation of a rise in US crude oil production
- rise in US crude oil rigs
Follow the series to learn more about bearish drivers. Any rise in US crude oil production and inventories will put a lid on crude oil (FENY) (USO) (UCO) prices. Moves in crude oil prices impact oil producers such as Denbury Resources (DNR), SM Energy (SM), Chevron (CVX), ExxonMobil (XOM), and Bonanza Creek Energy (BCEI). Read Crude Oil Market: Where’s the Smart Money Going? to learn more.
What’s in this series?
In this series, we’ll focus on the American Petroleum Institute’s crude oil inventories, record gasoline inventories and consumption, Libya’s crude oil production, Iran’s crude oil production, and some crude oil price forecasts.