US crude oil
On April 9, 2018, US crude oil May futures rebounded 2.2% and closed at $63.42 per barrel. The gain helped US crude oil active futures rise above their 20-day moving average on the same date. US crude oil May futures rose 0.7% on April 2–April 9, 2018.
On April 9, oil-weighted stocks California Resources (CRC), Denbury Resources (DNR), and Whiting Petroleum’s (WLL) returns were 0.6%, 2.2%, and -0.9%, respectively. On April 9, 2018, energy ETFs that hold energy stocks like the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and the Energy Select Sector SPDR ETF (XLE) rose 0.1% and 0.5%.
What pushed oil prices up?
On April 9, 2018, the S&P 500 Index (SPY) rose 0.3%. In the last trading session, the Health Care Select Sector SPDR ETF (XLV) rose 1%—the largest gainer among SPDR ETFs that break up the broad market’s performance into subsectors. The recovery in the equity markets could have supported oil’s rise on the same date. The sentiments across the oil and equity markets are related.
The missile strike on a Syrian airbase on April 9, 2018, could have escalated geopolitical tensions in the Middle East. Often, rising geopolitical tensions in this region have supported oil prices.
Other important drivers
In the next part, we’ll discuss US crude oil production. We’ll discuss US crude oil inventory levels and US crude oil exports in Part 3 and Part 4 of this series.
On April 9, 2018, US crude oil active futures were 0.3%, 0.9%, 3.8%, and 15.1% above their 20, 50, 100, and 200-day moving averages, respectively. US crude oil active futures trading above all of these moving averages across various timeframes is a bullish signal for prices.