Could US Crude Oil Regain Its $50 Level?
US crude oil
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In the week ended October 6, 2017, the US oil (OIIL) rig count fell by two to 748. The fall in the oil rig count could help support oil prices. The growing cooperation between the world’s top oil exporters, Russia and Saudi Arabia, could be another bullish factor for oil prices. However, the rise in gasoline inventories could increase supply-side worries.
This week, the OPEC1 Monthly Oil Market Report and the EIA (Energy Information Administration) Short-Term Energy Outlook Report could be important drivers for US crude oil prices. These drivers may help it regain the $50 mark. We’ll discuss the calendar for important events this week in the final part of this series.
Apart from the above data releases, the possible impact of Hurricane Nate on US refinery operations on the Gulf Coast could have pulled oil lower last week. Any fall in the US refinery utilization could increase the US crude oil inventory level.
Between September 29 and October 6, 2017, natural gas (UNG)(BOIL)(FCG) November futures fell 4.8%. On October 6, natural gas futures closed at $2.86 per MMBtu (million British thermal units), below the $2.9 mark.
Last week, based on the natural gas inventory data released by the EIA on October 5, natural gas inventories rose 14 Bcf less than the market’s expected rise. However, on the same day, natural gas prices fell 0.6%. The bearish weather forecast data for the first two months of winter 2017–2018 could be behind the fall.
- Organization of the Petroleum Exporting Countries ↩