Saudi Arabia and oil prices
On October 23, Saudi Arabia announced that it will keep fulfilling customers’ oil demand. US sanctions on Iran are slated to be effective in early November. The announcement might have opened the way for lower oil prices. Saudi Arabia is a prominent player in the oil market. On October 22–25, US crude oil prices have fallen 2.9%. The slowdown in China will likely have a negative impact on oil’s demand growth.
US crude oil prices might drift lower. In Part 4, we’ll discuss the important price level for US crude oil next week.
US crude oil prices
On October 25, US crude oil December futures rose 0.8% and settled at $67.33 per barrel. In the trailing week, US crude oil prices fell 2% due to the factors discussed above.
The Energy Select Sector SPDR ETF (XLE) rose 1.2% on October 25. The S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) rose 1.9% and 1.6%, respectively, on October 25. In Part 3 of this series, we’ll analyze US crude oil’s relationship with these equity indexes. Integrated energy stocks like ExxonMobil (XOM) and Chevron (CVX) are also sensitive to oil prices.