US crude oil prices and the broader market
On November 12, US crude oil December futures fell 0.4% and settled at $59.93 per barrel—the lowest closing level for active US crude oil futures since February 13. The Energy Select Sector SPDR ETF (XLE) fell 2.1% on November 12. The S&P 500 (SPY) and the Dow Jones Industrial Average (DIA) fell 2% and 2.3%, respectively. The fall in the broader market might have dragged energy stocks.
In the trailing week, US crude oil prices have lost 5%. US crude oil prices are already in a bear market. On November 12, President Trump said that he doesn’t expect an output cut from OPEC. According to President Trump, oil prices are too high based on the supply-demand dynamics, which might make oil’s fall worse.
Previously, Saudi Arabia announced a reduction in its oil exports in an attempt to work with other oil producers for a synchronized production cut. Saudi Arabia’s government has closer ties with the United States than any other Middle East nation.
On November 12, US crude oil futures were 9.3%, 13.5%, 13.5%, and 11.1% below their 20-day, 50-day, 100-day, and 200-day moving averages, respectively. US crude oil prices below these key moving averages indicate a bearish sentiment for oil.