uploads///oil _ image

US Crude Oil Futures Are near a 2-Week Low

By

Mar. 1 2018, Published 9:48 a.m. ET

Crude oil futures

April US crude oil futures contracts fell 2.2% to $61.64 per barrel on February 28, 2018—the lowest settlement since February 15, 2018. Brent oil futures fell 1.2% to $65.78 per barrel on February 28, 2018—the lowest settlement since February 21, 2018.

The United States Oil ETF (USO) and the United States Brent Oil ETF (BNO) follow WTI and Brent crude oil futures, respectively. USO fell ~2.2% to 12.3 on February 28, 2018, while BNO fell 2.7% to 17.7 on the same day.

Article continues below advertisement

Drivers for crude oil futures 

Crude oil prices declined on February 28, 2018, due to the larger-than-expected increase in US crude oil inventories, an unexpected rise in gasoline inventories, and record US crude oil production.

The appreciating dollar also pressured oil prices on February 28, 2018. The US Dollar Index appreciated 0.3% to 90.6 on February 28, 2018. The US Dollar Index is near a two-month high. The Power Shares DB US Dollar Bullish ETF (UUP) rose 0.3% to 23.6 on February 28, 2018. UUP follows the US dollar’s performance, which is also near a two-month high.

The factors mentioned above could pressure oil prices in upcoming sessions too. US crude oil prices declined 0.1% on February 21–28, 2018. The ProShares Ultra Bloomberg Crude Oil ETF (UCO) increased 1.1% on February 21–28, 2018, while the PowerShares DB Oil Fund (DBO) fell 0.2% during the same period. These funds follow crude oil futures. The above chart shows that UCO outperformed other crude oil ETFs on February 21–28, 2018. UCO provides twice the daily return of an index of WTI crude futures contracts.

Series overview

In this series, we’ll discuss US crude oil inventories and production and US gasoline and distillate inventories.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.