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US Crude Oil Futures Rose above 20-Day Moving Averages

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US crude oil futures 

August WTI crude oil (IEZ) (USO) (IXC) (IYE) futures are above their 20-day moving averages of $44.75 per barrel as of July 17, 2017. They’re just below their 50-day moving averages of $46.89 per barrel as of July 17, 2017. The moving averages suggest that prices could rise in the short term. 

WTI crude oil futures’ important support level is at $45 per barrel. Prices hit this level multiple times in the last two months. WTI crude oil futures’ key resistance level is at $47 per barrel. Prices tested these levels multiple times in the last three months.

The rollercoaster ride in crude oil prices impacts oil and gas producers’ earnings like Swift Energy (SFY), Apache (APA), Northern Oil & Gas (NOG), and QEP Resources (QEP).

Crude oil price forecasts  

The EIA (U.S. Energy Information Administration) estimates that US crude oil prices will average $48.9 per barrel in 2017—3.8% lower than previous estimates. The EIA also estimates that US crude oil prices will average $49.5 per barrel in 2018—7.5% lower than previous estimates.

The EIA estimates that Brent crude oil prices will average $50.79 per barrel in 2017—3.6% lower than previous estimates. The EIA estimates that Brent crude oil prices will average $51.6 per barrel in 2018—7.2% lower than previous estimates. WTI and Brent crude oil prices averaged $43.3 per barrel and $43.7 per barrel, respectively, in 2016.

OPEC’s production cut deal and improving global oil demand could drive crude oil prices higher. However, a rise in production from the USBrazil, and Canada could weigh on oil prices.

Read Will the Crude Oil Futures Rally Be Short-Lived? and OPEC and Non-OPEC Meeting Could Drive Crude Oil Futures to learn more about crude oil.

Read Will Natural Gas Outperform in 2H17? for more on natural gas.

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