US and Brent crude oil futures
January WTI (West Texas Intermediate) crude oil futures rose 2.1% to $58.02 per barrel on November 22, 2017, the highest level seen since June 2015. Brent oil (BNO) futures rose 1.2% to $63.32 per barrel.
Oil prices rose due to a drop in US crude oil inventories, a weak US dollar (UUP), and crude oil supply disruption. The Keystone Pipeline transports 590,000 bpd (barrels per day) of crude oil from Canada to the United States. It was shut down due to a leak last week, and restarting the pipeline may take several weeks.
Brent and WTI crude oil performance
Impact on ETFs and energy stocks
Higher oil prices benefit ETFs and oil producers. The ProShares Ultra Bloomberg Crude Oil ETF (UCO) and the United States Oil ETF (USO) have risen 64.8% and 29.6% respectively, since June 2017. Energy producers and drillers Bill Barrett (BBG), W&T Offshore (WTI), and Diamond Offshore (DO) have risen 72%, 50%, and 31%, respectively.
This series covers US crude oil, gasoline, and distillate inventories, refinery demand, and production. Next, we’ll analyze how the upcoming OPEC (Organization of the Petroleum Exporting Countries) meeting could drive oil prices.