Crude Oil Futures Could End Weaker for the Fourth Session

Crude oil futures 

US crude oil (USO) (USL) futures contracts for December delivery fell 1.8% to $55.70 per barrel on November 14, 2017. Similarly, Brent oil futures (BNO) contracts fell 1.5% to $62.21 per barrel on November 14, 2017. Prices fell due to estimates of a rise in US shale oil production for the 12th straight month. The IEA (International Energy Agency) downgraded the global crude oil demand estimates for 2017 and 2018, which also weighed on oil prices. The IEA released the report yesterday. The prices (BNO) (UCO) fell for the third day also due to forecasts of warmer-than-average temperatures in the coming months.

Crude Oil Futures Could End Weaker for the Fourth Session

Profit-booking 

Brent and US crude oil prices fell 3.2% and 2.8% from the 30-month high hit on November 6, 2017. Prices (DTO) (DBO) (OIL) also fell due to profit-booking. Lower oil prices have a negative impact oil majors (VDE) (IXC) like Shell (RDS.A), BP (BP), and Chevron (CVX).

Chinese economic data

Weaker-than-expected Chinese (FXI) economic data also pressured oil prices and base metals like nickel (JJN) and copper (JJC). China is one of the major oil and base metal consumers. Chinese crude oil imports hit a one-year low in October 2017. All of the factors mentioned above could pressure oil prices.

Wall Street  

The S&P 500 (SPY) fell 0.23% to 2,578.87 on November 14, 2017. Similarly, the NASDAQ (QQQ) fell 0.3% to 6,737.87 on the same day. The Dow Jones Industrial Average Index (DIA) fell 0.13% to 23,409.47 on November 14, 2017. These three indices hit an all-time high on November 8, 2017.

The S&P 500 (SPX-INDEX) fell 0.5% in the last five trading sessions. The energy (IXC) (XLE), industrials (XLI) (ITA), materials (XLB), and financials (XLF) (VFH) sectors weighed on SPY in the last five trading sessions.

US crude oil inventories  

The API (American Petroleum Institute) published its weekly crude oil inventory report on November 14, 2017. We’ll discuss the API’s crude, gasoline, and distillate inventory data. We’ll also cover US gasoline demand, Russian and US crude oil exports, and the IEA’s oil market report.