US and Brent crude oil futures
December WTI (West Texas Intermediate) crude oil (DWT) (USL) futures contracts fell 0.6% to $55.33 per barrel on November 15, 2017. Similarly, Brent oil (BNO) (DTO) futures fell 0.5% to $61.87 per barrel on the same day. Prices fell due to record US crude oil production and a surprise build in US crude oil and gasoline inventories. The EIA (U.S. Energy Information Administration) published the data yesterday. Prices (USL) (SCO) fell for the fourth day due to the forecast of slowing demand in 2017 and 2018.
Brent and WTI crude oil performance
Brent and WTI oil prices fell 3.7% and 3.4% from the 30-month high tested on November 6, 2017. However, oil (DBO) (UCO) prices have recovered almost 30% since the lows in June 2017 due to ongoing production cuts, the fall in OECD crude oil inventories, and geopolitical tensions.
OPEC’s meeting will be held on November 30, 2017. The meeting is an important driver for oil prices in the next two weeks.
What’s dragging the Wall Street?
Lower oil prices dragged energy stocks on November 15, 2017. Energy stocks like Callon Petroleum (CPE), Parsley Energy (PE), Chesapeake Energy (CHK), and Matador Resources (MTDR) fell more than 2% on the same day.
The energy sector (XLE) (IEZ) fell for the fourth consecutive day and fell 4% during this period. It even dragged Wall Street on November 15, 2017. The S&P 500 (SPY) fell 0.5% to 2,564.62 on November 15, 2017. The delay in approving the US tax bill also weighed on the US stock market.
EIA’s crude oil inventory report
The EIA released its crude oil inventory report on November 15, 2017. In this series, we’ll discuss US crude oil inventories, production, and gasoline and distillate inventories.
In the next part, we’ll discuss how Russia and OPEC’s meeting could drive oil prices.