Crude Oil Futures Fell, but S&P 500, Dow, and NASDAQ Rose
Crude oil futures
US crude oil (USO) (UWT) futures contracts for November delivery fell 2.1% to $50.58 per barrel on October 2, 2017. Brent (BNO) crude oil futures contracts fell 1.2% to $56.12 per barrel on October 2, 2017.
Prices fell due to the strong dollar (UUP) and oversupply concerns. The rise in OPEC’s crude oil production by 50,000 bpd (barrels per day) in September 2017 mainly weighed on crude oil prices. The rise in US crude oil rigs to a one-month high could spur US crude oil production. It also pressured crude oil (UCO) (USL) prices.
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US crude oil futures’ performance
On October 2, 2017, US crude oil futures had the lowest settlement since September 8, 2017. US crude oil futures have fallen 12% year-to-date. However, US crude oil (DBO) (UWT) prices have risen 19.5% from the lows in June 2017 due to these bullish drivers. Moves in crude oil prices impact oil and gas producers (XLE) (VDE) like ConocoPhillips (COP), Hess (HES), and Devon Energy (DVN).
S&P 500, Dow, and NASDAQ
The S&P 500 (SPY) and Dow Jones Industrial Average Index (DIA) closed at record levels of 2,529.12 and 22,557.60 on October 2, 2017. NASDAQ (QQQ) closed at record levels of 6,516.72 on the same day. Optimism due to President Trump’s proposed tax reform propelled the US stock market. The expectation of strong 3Q17 earnings results also supported the US stock market.
The materials (XLB), healthcare (XLV), financials (XLF), and industrials (XLI) sectors supported SPY on October 2, 2017. However, the real estate (VNQ), consumer staples (XLP), telecommunication (VOX), and energy (XOP) sectors limited the upside for SPY on the same day.
In this series, we’ll look at the crude oil production from Saudi Arabia, Russia, the US, and Libya. We’ll also discuss some crude oil price forecasts.