Energy calendar this week
Let’s track some important events for crude oil and natural gas traders on August 7–11, 2017.
- August 7–8, 2017 – The OPEC (Organization of Petroleum Exporting Counties) and non-OPEC technical committee will meet in Abu Dhabi to discuss compliance with the production cut deal.
- August 8, 2017 – The American Petroleum Institute will release its weekly crude oil inventory report.
- August 9, 2017 – The EIA (U.S. Energy Information Administration) will release its weekly crude oil and gasoline inventory report.
- August 10, 2017 – OPEC will release its monthly oil market report.
- August 10, 2017 – The EIA will release its weekly natural gas storage report.
- August 11, 2017 – The IEA (International Energy Agency) will release its monthly oil market report.
- August 11, 2017 – Baker Hughes will release its weekly US oil and gas rig count report.
High and low
US active crude oil (ERY) (ERX) (USL) (PXI) futures hit $26.21 per barrel on February 11, 2016—the lowest level in 13 years. In contrast, prices hit $54.45 per barrel on February 23, 2017—the highest level in more than 24 months.
Crude oil futures are near two months high
September US crude oil (DIG) (SCO) (BNO) (IEZ) prices are on a rollercoaster ride in 2017 due to bullish and bearish drivers. US crude oil prices are near a two-month high. Higher crude oil prices have a positive impact on oil and gas producers such as Stone Energy (SGY), Hess (HES), Noble Energy (NBL), and Bill Barrett (BBG).
Will crude oil futures rise above $50 per barrel?
Key factors that could drive oil (IXC) (IYE) prices higher are:
- higher compliance by OPEC with the production cut deal in August 2017
- a fall in OPEC crude oil exports in August 2017
- a fall in US crude oil and product inventories
- a fall in global crude oil inventories
- a bullish monthly oil market report from OPEC and IEA
US crude oil forecast
In the next part of this series, we’ll see how Cushing crude oil inventories impact prices.
Baker Hughes released its weekly US crude oil rig count report on August 4, 2017. The US crude oil rig count fell by one to 765 on July 28–August 4, 2017.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.