Crude oil prices
March WTI (West Texas Intermediate) crude oil (PXI) (BNO) (USL) (IYE) futures contracts fell 0.8% and settled at $52.75 per barrel on January 25, 2017. Brent crude oil futures fell 0.7% and closed at $55.08 per barrel.
Crude oil prices fell due to the following factors:
- There was a rise in US crude oil inventories.
- There was a rise in refined product inventories.
- On January 25, Iran’s oil minister reported that the country is producing close to 3.9 MMbpd (million barrels per day) of crude oil. It could pressure oil prices.
Bullish drivers of crude oil
- Cushing crude oil inventories fell by 0.3 million barrels in the previous week.
- The US Dollar Index fell 0.32% to 100 on January 25, 2017. It’s trading near two-month lows.
- There’s optimism about major oil producers complying with production cut plans.
Moves in crude oil (UCO) (IEZ) (IXC) prices impact on oil and gas producers’ earnings like ExxonMobil (XOM), ConocoPhillips (COP), Comstock Resources (CRK), Northern Oil & Gas (NOG), and Triangle Petroleum (TPLM).
US crude oil inventories
The EIA (U.S. Energy Information Administration) released its weekly crude oil inventory report on January 25, 2017. We’ll look at US crude oil inventories and their regional breakdown in Part 2 of this series.
In this series, we’ll look at US crude oil production, refinery demand, imports, and inventories. We’ll also look at gasoline and distillate inventories.
We’ll start by looking at US crude oil prices in early morning trade on January 26, 2017.