Is the Rise in US Crude Oil Sustainable?
US crude oil
Interested in DJIA-INDEX? Don't miss the next report.
Receive e-mail alerts for new research on DJIA-INDEX
Will oil prices rise further?
In the week ended November 10, 2017, the US oil rig count rose by nine to 738. The rise was the highest since June 30, 2017. Oil rigs are crucial to crude oil production. A further rise in the US crude oil production from its highest level since 1983 could pose a threat to US crude oil prices.
Apart from that, the rising geopolitical tension between Saudi Arabia and Iran may impact the possible extension of the OPEC production cut deal.
In the week ended November 10, 2017, the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) fell 0.2% and 0.5%, respectively. It seems that these equity indexes could have escaped oil’s rise. We’ll discuss the price performance of a few more equity indexes and the energy sector in the next part.
Between November 3 and November 10, 2017, natural gas (UNG) December futures rose 7.7%. On November 10, 2017, natural gas active futures closed at $3.21 per MMBtu (million British thermal units). Last week, the bullish weather forecast and inventory report could have helped natural gas to rise. Plus, weather may support natural gas prices this week as well.