Will Crude Oil Prices Reverse?
Crude oil prices
WTI (West Texas Intermediate) crude oil (SCO) (IXC) (IYE) futures contracts for May delivery fell 0.54% and settled at $53.11 per barrel on April 12, 2017. The S&P 500 (SPY) (SPX-INDEX) fell 0.4% on April 12, 2017. Oil and gas are major parts of the energy sector. The energy sector accounts for ~6.6% of the S&P 500 as of April 7, 2017.
US crude oil prices fell due to the rise in US crude oil production for the eighth consecutive week. The rising production along with near record US crude oil inventories and the strong dollar (UUP) could pressure crude oil prices.
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However, crude oil (XLE) (XOP) (USL) prices are near a six-week high. Moves in crude oil prices can impact the earnings of oil and gas producers like Noble Energy (NBL), Northern Oil & Gas (NOG), Hess (HES), and Triangle Petroleum (TPLM).
Cushing crude oil inventories hit record
Cushing crude oil inventories rose by 0.3 MMbbls (million barrels) to 69.4 MMbbls between March 31, 2017, and April 7, 2017, the highest level ever. Record Cushing crude oil inventories could also pressure oil prices. Thus, the recovery in crude oil prices could be short-lived. Read the rest of this series to learn more.
Crude oil volatility index
The crude oil volatility index fell 1.3% to 26.9 on April 12, 2017. It hit 24.7 on March 1, 2017, the lowest level since October 2014.
In this series
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 April 13, 2017.