US crude oil
On November 24, 2017, at 2:03 AM EST, US crude oil January futures were trading at $58.59 per barrel. It’s very likely that we could a see another 2017 high today.
However, fundamental drivers like the US oil rig count and growing US crude oil exports could threaten oil’s rally. Since OPEC’s production cut deal was announced on November 30, 2016, US crude oil production has risen by 80% of OPEC’s pledged output cut. The extra supply coming out of the US could undo OPEC’s efforts to boost oil prices.
On November 15–22, 2017, US crude oil active futures rose 4.5%. The S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) rose 1.3% and 1.1% during this period. Did oil help these equity indexes rise? We’ll discuss this in the next part.