Crude Oil Prices: Will Bullish Momentum Continue?
Crude oil prices
WTI (West Texas Intermediate) crude oil (USL) (XOP) (PXI) futures contracts for May delivery rose 0.1% and closed at $53.18 per barrel on April 13, 2017. The US stock market was closed on April 14, 2017, due to Good Friday. The S&P 500 (SPY) (SPX-INDEX) and the Dow Jones Industrial Average fell 0.6% and 0.7%, respectively, on April 13, 2017.
US crude oil prices rose 0.8% in the past week. They’re near a one-month high due to:
- possible extension of major producers’ production cut deal in 2H17, which could offset the rise in US crude oil production
- supply outage in Libya
- start of the summer driving season in the US, which could boost demand and support oil prices
- concerns about geopolitical tensions in the Middle East due to Syria
- Russia’s intent to extend major producers’ production cut deal
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Saudi Arabia, Kuwait, and Iraq
Saudi Arabia, Kuwait, and Iraq are OPEC’s (Organization of the Petroleum Exporting Countries) major oil producers. Their combined production accounts for more than 50% of OPEC. These countries support the extension of major producers’ production cut deal in 2H17.
Iraq needs higher oil prices to fight the war with the Islamic State. Saudi Arabia needs higher crude oil prices ahead of its initial public offering of its state-owned oil company, Aramco. As a result, these countries will likely push for higher oil prices.
What’s in this series?
In this series, we’ll look at the energy calendar, US crude oil’s (RYE) (VDE) (XES) highs and lows in the last 15 months, Cushing crude oil inventories, the US crude oil rig count, and some crude oil price forecasts.
In the next part, we’ll look at the US dollar and how it impacts crude oil prices.