Crude oil futures
However, the relative strength index indicates that US crude oil prices are overbought. As a result, crude oil (UCO) (USL) prices could fall. Crude oil prices could also fall due to a rise in US crude oil production and gasoline inventories. The EIA will release the data on January 18, 2018. Prices could also decrease due to profit-booking.
On January 16, 2018, Goldman Sachs said that crude oil prices could exceed its forecast in the coming months. It predicts that Brent (BNO) and WTI crude oil (USO) prices could average $62 and $57.5 per barrel in 2018. Strong crude oil demand and higher compliance with production cuts could drive crude oil prices higher. Higher oil prices benefit energy producers (RYE) (XLE) like Laredo Petroleum (LPI), Northern Oil & Gas (NOG), and Whiting Petroleum (WLL).
Societe Generale estimates that Brent and WTI crude oil (USO) prices could average $62 and $57.75 per barrel in 2018. Bank of America Merrill Lynch estimates that Brent prices will average $64 per barrel in 2018.
The EIA forecast that Brent and WTI crude oil would average $59.74 per barrel and $55.33 per barrel in 2018. The rise in US crude oil production would limit the upside for oil prices in 2018. Brent and WTI crude oil prices averaged $54.15 per barrel and $50.79 per barrel in 2017.
Read Will Crude Oil Bulls or Bears Dominate Oil Prices This Week? and Bears Might Control the US Natural Gas Market in 2018 for updates on oil and gas.