US crude oil futures
Brent crude oil futures fell 0.7% to $49.61 per barrel on July 4, 2017. August WTI (West Texas Intermediate) crude oil (XLE) (XOP) (PXI) futures contracts rose in electronic trading. Trading was thin due to the US Independence Day holiday on July 4, 2017.
US crude oil futures rose for the ninth consecutive day. Prices are near a one-month high due to short covering and the fall in monthly US crude oil production. For more on bullish drivers, read Crude Oil Futures Rose for the Seventh Straight Day.
Crude oil performance
North Korea’s multiple missile tests and geopolitical tension between Qatar and Middle East countries could cause a supply outage, which could support crude oil prices. On July 5, 2017, ANZ Bank stated that geopolitical tension could benefit crude oil (XLE) (XOP) and gold (GLD) prices in the short term.
Russia’s crude oil production
Bloomberg surveys project that Russia produced 11.05 MMbpd (million barrel per day) of crude oil in June 2017. Russian government officials stated that Russia would continue the production cut deal until March 2018. Russia might not support deeper or longer production cuts. Deeper or longer cuts might indicate oversupply in the market, which could weigh on crude oil prices.
Next, we’ll look at crude oil drivers and US crude oil prices in early morning trade.