Crude oil price movement
Below is our crude oil price and fundamental analysis. For an in-depth fundamental look at crude oil and related companies, sectors, and drivers, please refer to our Energy and Power page.
WTI (West Texas Intermediate) crude oil for May delivery trading in NYMEX gained marginally by 0.73% in yesterday’s trade. WTI oil prices closed at $50.79 per barrel on April 9, 2015. Oil prices were less volatile as Iran talks signal a delay in signing the nuclear accord. This means that there will be a delay in the excess oil from Iran. It won’t flood the oil market as soon.
Oil ETFs tracking WTI crude oil—like the ProShares Ultra DJ-UBS Crude Oil (UCO) and the United States Oil Fund LP (USO)—fell marginally in yesterday’s trade. USO and UCO dropped by 0.22% and 0.65%, respectively, on Thursday, April 9, 2015.
US commercial crude oil inventories increase
On April 8, 2015, the EIA (U.S. Energy Information Administration) reported that weekly crude oil stockpiles increased by 10.95 MMbbls (million barrels) for the week ending April 3. Last week also saw inventories increase by 4.8 MMbbls. This massive inventory buildup signals weak demand in the oversupplied crude oil market.
The increase in inventories is positive for crude oil tankers’ stocks. This increases their orderbook for shipping or storing the cheap oil in the supertankers. Stocks like Tesoro (TSO), Teekay Tankers (TNK), and DHT Holdings (DHT) could benefit from the high inventory oil and gas market.
Oil prices increased for the fifth day in the last ten trading sessions. During this period, the average up days’ prices increased 1.81%—compared to the down days’ average. Natural gas was the worst performer in yesterday’s trade. However, WTI crude oil fared well against all of the other commodities. Brent crude oil topped the charts in the performance across commodities. Crude oil prices are still in a downtrend. They lost almost 5% YTD (year-to-date).