Brent and US crude oil futures
February WTI crude (DWT) (UCO) oil futures contracts rose 2.6% to $59.97 per barrel on December 26, 2017. Prices hit an intraday high of $60.01 per barrel on the same day—the highest level since June 2015. The United States Oil ETF (USO) rose 2.40% to 11.9 on December 26, 2017—the largest oil futures tracking ETF.
Brent crude (BNO) (OIL) oil futures contracts rose 2.7% to $67.02 per barrel on December 26, 2017. Prices hit an intraday high of $67.1 per barrel on the same day—the highest level since May 2015. Prices rose due to the supply outage in Libya and higher compliance with ongoing production cuts.
Crude oil supply outage in Libya
On December 26, 2017, militants blew up the pipeline that transports crude oil to the port of Es Sider in Libya. NOC (National Oil Corporation) is a state-owned oil production company in Libya. It said that Libya’s crude oil production fell by 70,000 bpd (barrel per day)–100,000 bpd. It also added that the reasons for the blast weren’t clear.
Wall Street’s performance
The IT (XLK) (VGT) and utilities (XLU) (VPU) sectors dragged SPY the most on December 26, 2017. However, the energy (XLE) (VDE) and real estate (VNQ) (IYR) sectors supported SPY the most on December 26, 2017.
In this series, we’ll discuss US crude oil inventories, US crude oil refinery demand, gasoline demand, and some crude oil price forecasts.