27 Nov

US Crude Oil at New 2017 High: Is Risk Rising?

WRITTEN BY Rabindra Samanta

US crude oil

Between November 17 and November 24, 2017, US crude oil (USO) (USL) January futures rose 3.9%. On November 24, US crude oil active futures closed at $58.95 per barrel, the highest closing price in 2017 to date.

 US Crude Oil at New 2017 High: Is Risk Rising?

What’s causing the upside in oil prices?

News reports suggested that Russia and OPEC will very likely extend the production cut deal through 2018, which could have pushed oil prices to the new high. The OPEC and other major oil producing countries will meet on November 30, 2017, to decide on the production cut deal. Moreover, the US dollar (UUP) fell 0.9% last week, which could have boosted oil prices.

In the week ended November 24, 2017, US crude oil outperformed Brent crude oil. The halt in the Keystone Pipeline’s operations could be behind WTI crude oil’s outperformance.

However, on November 22, 2017, the oil rig count rose by nine from a week before to 747. The risk surrounding US crude oil production could trouble oil bulls, which could also weigh on natural gas prices.

Natural gas

Between November 17 and November 24, natural gas active futures fell 8.6%. On the latter date, natural gas active futures closed at $2.91 per MMBtu. Supply concerns could be behind natural gas’s fall. Moreover, the moderate weather forecast report could add more downside to natural gas prices this week.

Between November 17 and November 24, 2017, the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) both rose 0.9%. To know more about price performance of other equity indexes, continue to the next part.

Latest articles

US crude oil production has more than doubled since 2009 and grew by 1.1% over the last year. Currently, there are 133 operable refineries in the US.

The cannabis industry is fighting against the ongoing US-China trade war and recessionary worries, which have hurt valuations across the global market.

Higher revenues, increased ticket prices, and lower fuel costs are likely to drive American Airlines' Q3 earnings higher despite its Boeing MAX woes.

HEXO plans to report its Q4 earnings before the market opens on October 24. October has been tough for Hexo, with its stock falling 31.2% as of October 18.

Today, Advanced Micro Devices (AMD) rose 4% to over $32, making it one of the top Nasdaq gainers. Morgan Stanley raised its price target for AMD stock.

Early in 2019, President Donald Trump warned that China could overtake the US as a global power. He vowed that this would not happen under his leadership.