Crude oil prices
Crude oil’s lows in the last 12 months
- record US crude oil production in 2015
- record OPEC crude oil production
- record Russian oil production
- high global crude oil and refined products inventories
As of January 27, 2017, crude oil prices rose 103% from their 2016 lows. Higher crude oil (IYE) (IXC) (FENY) (SCO) prices have a positive impact on producers’ earnings such as Occidental Petroleum (OXY), Chevron (CVX), Comstock Resources (CRK), Northern Oil & Gas (NOG), and Triangle Petroleum (TPLM).
Key bearish drivers for crude oil in 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 27, 2017, crude oil prices are 1.7% below their highs.
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
A Reuters poll estimated that Brent and US WTI crude oil prices will average $57.01 per barrel and $55.23 per barrel in 2017, respectively. In the last part of this series, we’ll look at some crude oil price forecasts.
In the next part of the series, we’ll look at Cushing crude oil inventories and their impact on crude oil prices.