US Dollar Index
The US Dollar Index fell 0.3% to 94.4 on November 17, 2017. It supported US crude oil (DBO) (SCO) prices on the same day. US oil prices are near a three-year high. High oil prices benefit oil companies (RYE) (PXI) like Bill Barrett (BBG), Occidental Petroleum (OXY), Hess (HES), and Bonanza Creek Energy (BCEI).
The US dollar (UUP) fell ~0.85% last week. The US dollar fell due to the delay in the US tax bill proposal. The bill aims to cut US corporate and household taxes. A Reuters survey estimates that nearly 70% of the economists aren’t confident that the Trump Administration will get the bill passed this year.
US dollar’s highs and lows
The US dollar (USDU) hit 103.8 on January 3, 2017, which was the highest level in 14 years. In contrast, it hit a low of 90.99 on September 8—the lowest level in 33 months.
The US dollar hit a three-month high in early November 2017 due to the improving US economy and near-record US stock market (SPY) (DIA). The improving job market also supported the US dollar.
US dollar and crude oil
Crude oil (OIL) (DWT) and US dollar prices are usually inversely related. The US Central Bank might raise US interest rates in December 2017 and even in 2018, which would strengthen the US dollar. An expectation of a strong US dollar could limit the upside for oil prices.
Next, we’ll cover how Cushing inventories impact oil prices.
Baker Hughes reported that US oil rig counts were flat at 738 on November 10–17, 2017. The rigs rose 63.3% from the same period in 2016.
On March 15–22, US crude oil May futures rose 0.4% and closed at $59.04 per barrel.
Micron has given a weaker-than-expected revenue forecast for the third quarter but expects memory chip demand to recover in the fourth quarter.
Signet Jewelers (SIG) is expected to report weak fourth-quarter results on April 3.
The EIA is scheduled to release its oil and natural gas inventory data on March 27–28, which could be a short-term driver for oil and natural gas prices.
On March 22, J.P. Morgan (JPM) downgraded PPG Industries' (PPG) rating to "underweight" from "neutral."
The week ending March 22 was a mixed bag for the cannabis sector. The cannabis sector ETFs ended largely in the negative territory.