Crude oil prices
July US crude oil (XLE) (XOP) (USO) futures contracts fell 0.2% and were trading at $44.13 per barrel in electronic trade at 5:55 AM EST on June 20, 2017. Prices are near November 2016 levels. Prices have fallen 15.8% in the last 12 months. Lower crude oil prices have a negative impact on oil producers like Sanchez Energy (SN), Continental Resources (CLR), and Denbury Resources (DNR).
Market focuses on the API’s crude oil inventories
The API (American Petroleum Institute) will release its weekly crude oil inventories report on June 20, 2017. Market surveys estimate that US crude oil inventories would fall by 2.2 MMbbls (million barrels) on June 9–16, 2017.
If the API reports a larger-than-expected fall in US crude oil inventories, it might support crude oil (USO) (UCO) prices. A surprise build could cause collateral damage for oil prices. US crude oil inventories have fallen by 24.4 MMbbls in the last ten weeks.
Crude oil stored in tankers
Market intelligence company Kpler estimates that crude oil stored in supertankers hit 111.9 MMbbls in early June 2017. It’s the highest level so far in 2017. Storage increased predominantly in oil tankers in Singapore, the North Sea, and Iran. So far in 2017, crude oil stored in tankers has risen 23% in Singapore. Likewise, floating storage has risen 32% in the North Sea so far in 2017. High floating storage and high global crude oil inventories would pressure oil prices in the short term.
Next, we’ll look at how Iran impacts crude oil prices.