Crude oil prices
WTI (West Texas Intermediate) crude oil futures contracts for October delivery rose by 0.88% and closed at $44.83 per barrel on September 6, 2016. Brent crude oil futures also rose by 0.9% and settled at $47.26 per barrel.
Crude oil prices rose for the second straight day despite the skepticism about the oil producers’ meeting meant to support crude oil prices. The United States Oil ETF (USO) and the ProShares Ultra Bloomberg Crude Oil (UCO) rose by 1.5% and 3.2%, respectively, on September 6.
US dollar index
The US dollar index depreciated on September 6, 2016. Consequently, the weak dollar supported crude oil prices. For more, read How US Dollar Could Influence Crude Oil Prices This Week.
Uncertainty in crude oil prices impacts ETFs and ETNs such as the iShares U.S. Oil Equipment & Services ETF (IEZ), the DB Crude Oil Double Short ETN (DTO), the Direxion Daily Energy Bear 3x (ERY), and the PowerShares DWA Energy Momentum (PXI).
Markets focus on US crude oil inventory report
Market intelligence company Genscape reported that Cushing crude oil inventories fell by 700,000 barrels between August 26 and September 2, 2016. This also supported crude oil prices on September 6, 2016. For more, read How Falling Cushing Crude Inventories Are Impacting Oil Prices.
What’s in this series?
On September 6, 2016, US crude oil prices were down 13% since their June 2016 highs. Read part four and part five of this series to learn about bearish crude oil drivers. In contrast, WTI crude oil prices have risen 71% since their lows in February 2016. Read the last two parts of this series for updates on bullish crude oil drivers. For more on US crude oil prices’ peaks and lows, read Tropical Storm Causes Crude Oil Prices to Rebound.
In the next part, we’ll discuss the oil producers’ meeting and crude oil prices during early morning trading on September 7.