Let’s take a look at some important events for crude oil and natural gas this week.
- Tuesday, June 6 – The API (American Petroleum Institute) will release its crude oil inventory report.
- Wednesday, June 7 – The EIA (U.S. Energy Information Administration) will release its weekly petroleum status report.
- Thursday, June 8 – The EIA will release its weekly natural gas storage report.
- Friday, June 9 – Baker Hughes will release its weekly US crude oil and natural gas rig count report.
Crude oil futures
US crude oil (USO) (IXC) (IYE) (PXI) prices are near their one-month low. Lower crude oil prices have a negative impact on oil producers’ earnings. Oil producers like as Denbury Resources (DNR), Comstock Resources (CRK), and SM Energy (SM) have fallen 33.5%, 22.1%, and 19.9%, in the past month.
The above-mentioned events could drive crude oil futures this week. For US crude oil prices, the important support level is at $45.9 per barrel. Prices are 3.8% above this level as of June 2, 2017. Prices tested this level two times in the last ten months. A surprise build in US crude oil inventories for the week ending June 2, 2017, could pressure oil prices this week. For more bearish drivers, read Libya and OPEC Pressure Crude Oil Prices to a 3-Week Low and Crude Oil Prices Fell and Dragged S&P 500 Down.
For US crude oil prices, important resistance levels are at $51.5 per barrel. As of June 2, 2017, prices were 7.4% below their nearest key resistance level. Prices tested this level three times in the last two months. The expectation of fall in global crude oil inventories due to OPEC’s recent deal could drive oil prices.
In the next part of the series, we’ll look at how Cushing crude oil inventories impact crude oil prices.