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Are US Crude Oil Futures and the S&P 500 Recovering?

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Updated

US crude oil futures  

WTI crude oil futures contracts for March delivery rose 0.15% to $59.29 per barrel on February 12, 2018. Prices rose due to short covering and a weak dollar.

The US dollar declined 0.26% to 90.20 on February 12, 2018. The Power Shares DB US Dollar Bullish ETF (UUP) fell 0.38% to 23.5 on February 12, 2018. UUP tracks the US dollar’s performance.

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Crude oil performance 

Crude oil prices are near a two-month low. Brent and the US crude oil prices declined ~8.4% and 9.5% last week. Prices fell due to the rise in US oil inventories and record US oil production. These factors could pressure oil prices this week too.

Lower oil prices have a negative impact on ETFs like the United States Oil ETF (USO) and the ProShares Ultra Bloomberg Crude Oil ETF (UCO). USO and UCO fell 9% and 17.5%, respectively, last week. US crude oil prices have risen ~40% since June 2017 due to ongoing production cuts and strong demand.

S&P 500 performance  

The S&P 500 (SPY) rose 1.4% to 2,656 on February 12, 2018. SPY closed at a record level on January 26, 2018. On February 12, 2018, President Trump proposed the infrastructure spending plan in the budget, which supported the materials and industrial sectors. The materials and IT sectors were the top percentage gainers on February 12, 2018. These sectors pushed SPY higher on the same day. 

Series overview 

In this series, we’ll discuss the US dollar, US and non-OPEC crude oil production, Cushing inventories, US oil rigs, and some drivers for oil prices this week.

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