US crude oil futures
Prices rose due to strong demand and ongoing production cuts. The US dollar (UUP) is at a three-year low, which also supported oil prices on January 26, 2018. Higher oil prices favor funds like the Vanguard Energy ETF (VDE), which rose 0.6% to 105.96 on January 26, 2018.
Crude oil price performance
Oil prices are at a three-year high. So far, US oil (UCO) (SCO) prices have risen 9.5% in January 2018 due to production cuts, a fall in US crude oil inventories, and strong demand. For oil, it’s the best January performance in 12 years. US oil (USO) prices rose 4.4% last week due to the above factors. The factors could push crude oil prices even higher.
Wall Street’s performance
The NASDAQ (QQQ) rose 1.3% to 7,505.77, while the S&P 500 (SPY) rose 1.2% to 2,872.87 on January 26, 2018. The Dow Jones Industrial Average (DIA) gained 0.85% to 26,616.71 on January 26, 2018. All three indexes closed at a record level on the same day. The strong 4Q17 earnings results have been driving Wall Street.
The S&P 500 rose 2.2% in the last five trading sessions. The health care (XLV), telecommunication (VOX) (IYZ), and consumer discretionary (XLY) (VCR) sectors rose more than 3% in the last five trading sessions. They supported SPY the most in the last five trading sessions. These sectors could drive SPY this week. Reuters expects earnings growth of 13.2% for 4Q17—compared to the previous estimate of 12% at the beginning of the year.
In this series, we’ll discuss the US dollar, Cushing inventories, US crude oil rigs, and some drivers for oil prices this week.