Crude oil futures
February WTI crude oil (DBO)(USO) futures contracts rose 0.3% to $59.84 per barrel on December 28. Brent oil (BNO) futures rose 0.4% to $66.72 per barrel on the same day. A larger-than-expected draw in US crude oil inventories and unexpected decline in US crude oil production supported oil (DWT) prices. The EIA published the data on December 28.
Drivers for crude oil futures
The ongoing oil supply outage in Britain and Libya also helped oil (SCO) prices for the last few days. However, a supply outage could ease in early January 2018, which could pressure oil (USL) prices. Any rise in US production could also pressure oil prices.
The extension of ongoing production cuts and higher compliance with pledged cuts would help oil prices in 2018. Any decline in US and global crude oil inventories could also support oil prices. Prices are expected to begin 2018 on a bullish note.
The S&P 500 (SPY) gained ~20% in 2017. It’s the biggest annual gain since 2013. SPY advanced due to improving US economy and strong US corporate earnings growth.
In this series
This series covers US crude oil inventories and production. It also covers US gasoline and distillate inventories.