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Where Could Oil Prices Head?

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US crude oil

On March 11, US crude oil prices rose 1.3% and settled at $56.79 per barrel. The oil prices likely rose due to the falling global oil supply. In the trailing week, US crude oil prices rose 0.4%. Concerns about global economic growth might have limited the upside in oil prices.

Where could oil prices head on March 12?

At 6:46 AM EST on March 12, US crude oil prices were 53 cents more than the last closing level. The bullishness from March 11 might continue in today’s trade. The EIA’s (U.S. Energy Information Administration) Short-Term Energy Outlook report scheduled for today might be an important factor for oil prices.

The oil rig count is at an 11-month low, which could be crucial for oil’s upside. The global oil supply is falling sharply. If US crude oil production growth slows, it might boost oil prices. The EIA is expected to report a rise in oil inventories for the last week, which might be a positive development for oil prices.

On March 11, US crude oil active futures rose 2.8% above their 100-day moving average. Since March 4, US crude oil prices have stayed above this key moving average. On the upside, the closing level of $58.56 would likely be important for US crude oil prices until March 15.

The S&P 500 Index (SPY), the Dow Jones Industrial Average (DIA), and the S&P Mid-Cap 400 (IVOO) might be impacted by any short-term changes in oil prices due to their exposure to the energy sector. Upstream energy stocks like ConocoPhillips (COP), Chesapeake Energy (CHK), and Occidental Petroleum (OXY) will likely be impacted by any changes in oil prices.

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