Crude oil prices
WTI (West Texas Intermediate) crude oil (BNO) (XLE) (XOP) (PXI) (ERY) (ERX) (USL) (USO) (UCO) futures contracts for February delivery fell 0.1% and were trading at $52 per barrel in electronic trade at 1:25 AM EST January 10, 2017. Prices fell due to oversupply concerns. For more on crude oil and the dollar, read the previous part of the series.
Crude oil’s lows in the last 12 months
NYMEX crude oil settled at $26.21 per barrel on February 11, 2016. Crude oil prices hit 13-year lows due to the following:
- record OPEC crude oil production
- record Russian oil production
- high global crude oil and refined products inventories
- record US crude oil production in 2015
As of January 9, 2017, crude oil prices were up 98.2% from their 2016 lows. Higher crude oil and natural gas prices have a positive impact on producers’ earnings such as Cobalt International Energy (CIE), ConocoPhillips (COP), Warren Resources (WRES), Stone Energy (SGY), Occidental Petroleum (OXY), and Swift Energy (SFY).
Moves in crude oil and natural gas prices also impact funds such as the ProShares UltraShort Bloomberg Crude Oil (SCO), the iShares U.S. Energy ETF (IYE), the Fidelity MSCI Energy ETF (FENY), and the iShares Global Energy (IXC).
Key bearish drivers for crude oil 2017
Crude oil’s highs in the last 12 months
US crude oil prices settled at $54.1 per barrel on December 28, 2016—the highest since July 14, 2015. As of January 9, 2017, crude oil prices are 4% below their highs. Crude oil prices are down 3.8% in the first eight trading sessions of 2017.
Key bullish drivers for crude oil 2017
- successful implementation of major oil producers’ production cut deal
- India and China’s crude oil demand
- US gasoline demand
- falling US crude oil inventories
In the next part of the series, we’ll look at Cushing crude oil inventories and their impact on crude oil prices.