21 Dec

Bullish Drivers Could Support Crude Oil Futures Next Week

WRITTEN BY Gordon Kristopher FEATURED IN Commodities

Crude oil futures 

February US crude oil (SCO) (USL) futures contracts rose 0.9% to $58.09 per barrel on December 20, 2017. Brent (BNO) oil futures rose 1.2% to $64.56 per barrel on the same day.

A massive draw in US crude oil inventories supported oil (UWT) prices. The EIA released the data on December 20, 2017. The ProShares Ultra Bloomberg Crude Oil (UCO) rose 1.8% to 21.8 on December 20, 2017.

Bullish Drivers Could Support Crude Oil Futures Next Week

Supply outage 

The ongoing oil supply outage in Britain also supported oil (USO) prices. The Forties Pipeline transports 450,000 bpd (barrels per day) of crude from the North Sea to the Kinneil Terminal in Scotland. It’s the largest crude oil pipeline in Britain. The pipeline has been closed since December 11, 2017. The pipeline is expected to be shut down for several weeks due to repair work.

Bullish drivers for crude oil futures

On December 20, 2017, Kuwait’s oil minister said that compliance with ongoing production cuts was at 122% in December 2017. It’s the highest compliance level since January 2017. Higher compliance with production cuts and unplanned supply outages would help oil (DWT) (DBO) prices next week.

Oil prices were near a three-year high. Moves in oil prices impact oil and gas producers (VDE) (IEZ) like PDC Energy (PDCE), Parsley Energy (PE), and SM Energy (SM).

Wall Street 

The NASDAQ (QQQ), Dow Jones Industrial Average Index (DIA), and S&P 500 (SPY) fell on December 20, 2017. All three indices fell for the second straight day. However, the indices hit a record on December 18, 2017.

The S&P 500 (SPY) fell 0.08% to 2,679.3 on December 20, 2017. The real estate (VNQ) (IYR) and utilities (XLU) (VPU) sectors dragged SPY yesterday. However, SPY has risen almost 20% year-to-date.

In this series  

In this series, we’ll discuss US oil inventories and production as well as US gasoline and distillate inventories.

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