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Wall Street Hit Record Highs and Crude Oil Futures Rose

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Crude oil futures  

January WTI (West Texas Intermediate) crude oil (DBO) (OIL) futures contracts rose 0.7% to $56.83 per barrel on November 21, 2017. Brent (BNO) oil futures contracts rose 0.6% to $62.57 per barrel on November 21, 2017.

Prices rose ahead of OPEC’s meeting next week and the EIA’s weekly crude oil inventory report. A weak US dollar (UUP) supported crude oil (UCO) (USL) prices on November 21, 2017. Prices were near a 30-month high partially due to ongoing production cuts, supply outages in the Middle East, and slowing oil production from Venezuela.

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OPEC’s meeting 

Crude oil (DWT) (SCO) prices are on a rollercoaster ride ahead of OPEC’s meeting on November 30, 2017. Major producers agreed to curb oil production by 1,800,000 bpd (barrels per day) from January 2017 to March 2018.

Rising doubts about whether Russia will support prolonging the production cuts pressured oil prices in early November 2017. However, Saudi Arabia signaled the extension of the deal. On November 21, 2017, Russia’s oil majors and energy ministry said that a six-month extension of the ongoing production cuts was possible. Oil (UWT) (USL) prices have factored in the possible extension of the output cuts. Any delay in the extension would weigh on oil prices. Changes in oil prices could impact oil producers (XOP) (IEZ) like BP (BP), Shell (RDS.A), and Chevron (CVX). 

Wall Street hit record highs 

The NASDAQ (QQQ) rose 1.1% and recorded 6,862.48 on November 21, 2017. The Dow Jones Industrial Average Index (DIA) rose 0.7% and recorded 23,590.83 on the same day. The S&P 500 (SPY) rose 0.65% and recorded 2,599.03 on November 21, 2017.

The S&P 500 (SPX-INDEX) tested a record closing high for the first time in two weeks. The telecommunication (IYZ) and healthcare (XLV) sectors supported SPY on November 21, 2017. The small-cap Russell 2000 (IWM) also hit a record closing high on the same day.

US crude oil inventories   

The API (American Petroleum Institute) released its crude oil inventory report on November 21, 2017.

In this series, we’ll discuss the API’s crude, gasoline, and distillate inventory data. We’ll also discuss US gasoline demand, US crude oil exports and drilling activity, and Venezuela’s oil production.

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