uploads///oil producers

US Crude Inventories and OPEC Push Crude Oil to 5-Month High


Nov. 20 2020, Updated 2:51 p.m. ET

Crude oil prices 

November WTI (West Texas Intermediate) crude oil futures contracts rose 2.3% and settled at $49.83 per barrel on October 5, 2016. Brent crude oil futures rose 2% and settled at $51.86 per barrel. Prices hit a five-month high as OPEC (Organization of the Petroleum Exporting Countries) producers agreed to cut production. The surprise decline in US crude oil inventories also helped push prices higher.

The United States Oil ETF (USO) and the ProShares Ultra Bloomberg Crude Oil ETF (UCO) rose 2.3% and 4.6%, respectively, on October 5, 2016.

Article continues below advertisement

Oil producers’ meeting  

OPEC producers gathered at an energy forum in Algeria on September 26, 2016. For more, read Decoding the Major Oil Producers’ Meeting in Algeria and How Do Major Oil Producers Impact the Crude Oil Market?

On October 5, 2016, Algeria’s energy minister said that OPEC will meet with major oil producers in Istanbul October 8–13, 2016, to discuss the implementation of a quota system for members ahead of the OPEC meeting in Vienna in November 2016. OPEC members also pushed oil producers like Russia to reduce production to help rebalance the oil market. For more, read Analyzing Russia’s Crude Oil Production. Many traders and banks are still skeptical about the implementation of the quota system for OPEC members.

WTI and Brent crude oil prices

WTI and Brent crude oil prices are near June 2016 highs. US crude oil prices were up 13% in the last six trading sessions. For more on US crude oil prices’ highs and lows, read Crude Oil Prices Fell Due to High OPEC Production.

Higher crude oil prices could have a positive impact on the earnings of oil and gas producers like Comstock Resources (CRK), Northern Oil & Gas (NOG), and Synergy Resources (SYRG). They could also impact funds such as the iShares Global Energy ETF (IXC), the Guggenheim S&P 500 Equal Weight Energy ETF (RYE), and the United States Brent Oil ETF (BNO).

Article continues below advertisement

US crude oil inventories 

The U.S. Energy Information Administration released its weekly crude oil inventory report on October 5, 2016. We’ll look at US crude oil inventories and their regional breakdown in part three of this series.

Series focus 

In this series, we’ll look at US crude oil production, refinery demand, imports, and US gasoline and distillate prices and inventories. We’ll start by looking at US crude oil prices in early morning trade on October 6, 2016.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.