12 Dec

What’s Holding US Crude Oil below $60?

WRITTEN BY Rabindra Samanta

US crude oil

On December 11, 2017, US crude oil (USO) (USL) January 2018 futures rose 1.1%. The 2% rise in Brent crude oil prices could have supported the gain in US crude oil prices. In Part 5, we’ll discuss why Brent crude oil outperformed US crude oil. The pipeline outage in the North Sea could have helped WTI oil prices rise.

What’s Holding US Crude Oil below $60?

Rising US crude oil production is the main factor that could hold US crude oil below the $60 level. We’ll discuss it in Part 2. In Part 3, we’ll discuss the crucial relationship between oil prices and oil inventories.

On December 4–11, 2017, US crude oil January futures rose 0.9%. The S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) rose 0.8% and 0.4% during this period. Gains in oil prices could benefit these equity indexes.

Moving averages

On December 11, 2017, US crude oil active futures were 1.7%, 6.6%, 12.5%, and 16.1% above their 20, 50, 100, and 200-day moving averages, respectively. US crude oil prices have held near the 20-day moving average or the $57 level in the last two trading sessions. Crude oil’s 50-day moving average was 8.9% above its 200-day moving average—a sign that could support oil prices.

Latest articles

German chip maker Infineon Technologies has reportedly raised 1.55 billion euros (~$1.74 billion) in capital by selling its shares to fund its acquisition of Cypress Semiconductor (CY). Infineon has sold ~113 million new shares at 13.70 euros each.

As of June 18, Dunkin’ Brands (DNKN) was trading at $80.07, an 8.9% rise since reporting its first-quarter earnings on May 2. Also, DNKN was trading at a premium of 29.8% from its 52-week low of $61.69 and a discount of 1.6% from its 52-week high of $81.40.

19 Jun

Are Lower Oil Prices Weighing on ExxonMobil Stock?

WRITTEN BY Maitali Ramkumar

ExxonMobil (XOM) stock has fallen 7.1% in the second quarter so far. Let's review ExxonMobil's stock performance in comparison to oil price changes and equity market movements in the quarter.

19 Jun

As Facebook Unveils Libra, MSFT and CRM Join a Blockchain Group

WRITTEN BY Mayur Sontakke, CFA, FRM

On June 18, Facebook (FB) launched Libra, its own cryptocurrency. On the same day, CoinDesk published another piece of blockchain news that didn’t receive as much fanfare as Facebook’s Libra news. Was the timing a coincidence? We think not.

Uber Technologies (UBER) has picked Melbourne as another test site for its flying taxi service known as UberAir. The Australian city is the first international test site Uber has chosen for its flying taxi service. The addition of Melbourne brings the number of test locations Uber has picked for its UberAir service to three.

Lyft (LYFT) and Uber Technologies (UBER) are pushing back against California legislation that would require them to recognize their drivers as employees rather than independent contractors. The legislation would require companies like Lyft to give their drivers the compensation and benefits spelled out under California’s employment regulations.