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Oil Prices: $60 Could Be a Strong Support This Week

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Dec. 4 2020, Updated 10:53 a.m. ET

US crude oil

On February 9–16, 2018, US crude oil April futures rose 4.3% and closed at $61.55 per barrel on February 16, 2018.

The United States Oil ETF (USO), the United States 12 Month Oil ETF (USL), and the PowerShares DB Oil ETF (DBO) track US crude oil futures. The ETFs rose 4.4%, 3.7%, and 3.5%, respectively, in the seven calendar days to February 16, 2018. The 1.5% fall in the US dollar during this period and the EIA’s bullish crude oil inventory data helped oil prices establish a firm support zone around $60—the psychologically important level. US crude oil April futures might face resistance just above $63 this week.

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Natural gas

On February 9–16, 2018, natural gas March futures fell 1% and settled at $2.558 per million British thermal units on February 16. The United States Natural Gas ETF (UNG), which could serve as a proxy for natural gas futures, fell 1.5% during this period. Last week, inventory data didn’t boost natural gas prices. Natural gas bears could bet on prices falling below $2.5 this week.

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