X
<

US Gasoline Demand and China Could Drive Crude Oil Prices Higher

PART:
1 2 3 4 5 6
Part 2
US Gasoline Demand and China Could Drive Crude Oil Prices Higher PART 2 OF 6

Crude Oil Futures Could Breach Key Resistance of $55 per Barrel

Crude oil prices  

WTI (West Texas Intermediate) crude oil (ERX) (ERY) (XES) futures contracts for May delivery rose 0.1% to $52.4 per barrel in electronic trade at 4:45 AM EST on April 19, 2017.

US crude oil prices are trading near a one-month high. Likewise, broader markets like the S&P 500 (SPY) (SPX-INDEX) and Dow Jones are near all-time highs. Bullish momentum in the US stock market could support oil demand and oil prices. The US is the largest crude oil consumer. For more on crude oil prices, read Part 1 of this series.

Crude Oil Futures Could Breach Key Resistance of $55 per Barrel

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

Receive e-mail alerts for new research on ERX

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.

Bearish drivers 

US crude oil futures have fallen ~7% year-to-date due to the following factors:

All of these bearish drivers could pressure crude oil prices. However, the bullish drivers discussed in Part 1 of this series pushed crude oil prices above their key moving averages. US crude oil prices are above their 20-day, 50-day, 100-day, and 200-day moving averages of $51.4, $51.1, $52.1, and $49.9 per barrel as of April 19, 2017. It suggests more bullish momentum for oil prices. Prices could even breach key resistances of $54 and $55 per barrel in the short term if US crude oil inventories and global oil inventories start falling.

Higher crude oil (FXN) (FENY) (IXC) (XOP) prices have a positive impact on oil and gas exploration and production companies like Warren Resources (WRES), Noble Energy (NBL), ExxonMobil (XOM), and QEP Resources (QEP).

Next, we’ll look at the API’s estimates for US crude oil inventories.

X

Please select a profession that best describes you: