US crude oil futures

August WTI (West Texas Intermediate) crude oil (VDE) (UCO) (XLE) futures contracts rose 1.0% and closed at $45.49 per barrel on Wednesday, July 12, 2017. Brent crude oil futures rose 0.50% to $47.74 per barrel on the same day.

Prices rose due to the following:

WTI crude oil prices have risen 7.0% since June 21, 2017. For more on bullish drivers, read Crude Oil and Product Inventories Impact Crude Oil Futures and Crude Oil Futures Rose for the Seventh Straight Day.

Supply, Demand: Will Crude Oil Futures Rally Be Short-Lived?

Higher crude oil (IYE) prices have a positive impact on oil and gas exploration and production companies. Likewise, oil and gas producers such as QEP Resources (QEP), PDC Energy (PDCE), and Sanchez Energy (SN) rose 3.2%, 1.5%, and 2.7%, respectively, on July 12, 2017. However, US crude oil (ERY) (ERX) prices have fallen ~20.0% year-to-date. They fell due to the following:

Prices might not sustain the recent rally due to the following:

  • OPEC’s monthly report stated that non-OPEC producers’ productions will rise in 2018. OPEC also expects demand for its oil to fall in 2018 due to the rise in production in the United States, Canada, Brazil, and Russia.
  • Weekly US crude oil production is expected to rise between June 30, 2017, and July 7, 2017.
  • A larger-than-expected rise is expected in weekly US distillates between June 30, 2017, and July 7, 2017.
  • The production cut deal will not be able to remove excess crude oil from the market in the first half of 2017.

Crude oil supply and demand drivers suggest that crude oil (SCO) (BNO) prices could trade lower in the short term.

Let’s move on to the rest of this series, in which we’ll be taking a detailed look at these crude oil drivers.

Latest articles

German chip maker Infineon Technologies has reportedly raised 1.55 billion euros (~$1.74 billion) in capital by selling its shares to fund its acquisition of Cypress Semiconductor (CY). Infineon has sold ~113 million new shares at 13.70 euros each.

As of June 18, Dunkin’ Brands (DNKN) was trading at $80.07, an 8.9% rise since reporting its first-quarter earnings on May 2. Also, DNKN was trading at a premium of 29.8% from its 52-week low of $61.69 and a discount of 1.6% from its 52-week high of $81.40.

19 Jun

Are Lower Oil Prices Weighing on ExxonMobil Stock?

WRITTEN BY Maitali Ramkumar

ExxonMobil (XOM) stock has fallen 7.1% in the second quarter so far. Let's review ExxonMobil's stock performance in comparison to oil price changes and equity market movements in the quarter.

19 Jun

As Facebook Unveils Libra, MSFT and CRM Join a Blockchain Group

WRITTEN BY Mayur Sontakke, CFA, FRM

On June 18, Facebook (FB) launched Libra, its own cryptocurrency. On the same day, CoinDesk published another piece of blockchain news that didn’t receive as much fanfare as Facebook’s Libra news. Was the timing a coincidence? We think not.

Uber Technologies (UBER) has picked Melbourne as another test site for its flying taxi service known as UberAir. The Australian city is the first international test site Uber has chosen for its flying taxi service. The addition of Melbourne brings the number of test locations Uber has picked for its UberAir service to three.

Lyft (LYFT) and Uber Technologies (UBER) are pushing back against California legislation that would require them to recognize their drivers as employees rather than independent contractors. The legislation would require companies like Lyft to give their drivers the compensation and benefits spelled out under California’s employment regulations.