Crude oil futures
February US crude oil futures (DBO) (UCO) contracts rose 2% to $62.96 per barrel on January 9, 2018. Brent (BNO) oil futures rose 1.5% to $68.82 per barrel on January 9, 2018. The expectation of a fall in US crude oil inventories for the eighth consecutive week supported oil prices. Ongoing production cuts and strong crude oil demand also boosted oil prices.
API’s crude oil inventories
On January 9, 2018, the API (American Petroleum Institute) reported that US crude oil inventories fell by 11.2 MMbbls (million barrels) between December 29, 2017, and January 5, 2018. It’s the largest drop in US crude inventories for this time of the year since 1999, according to the API. Analysts expected that US crude oil inventories could have fallen by 4.1 MMbbls between December 29, 2017, and January 5, 2018. The massive draw in inventories boosted US crude oil (USL) prices in post-settlement trade on January 9, 2018. US crude oil (UCO) prices are at the highest level since December 14, 2017.
Wall Street’s performance
The NASDAQ (QQQ) rose 0.09% to 7,163.5, while the Dow Jones Industrial Average Index (DIA) rose 0.41% to 25,385.8 on January 9, 2018. The S&P 500 (SPY) rose 0.13% to 2,751.2 on the same day. All three of the indexes closed at a record level on January 9, 2018. Wall Street rose due to optimism ahead of the 4Q17 earnings season.
In this series, we’ll discuss the API’s gasoline and distillate inventories, gasoline demand, US dollar, and some crude oil price forecasts.