18 Dec

Will US Crude Oil Futures Be Range Bound This Week?

WRITTEN BY Gordon Kristopher FEATURED IN Commodities

Energy calendar  

The American Petroleum Institute will release its crude oil inventory report on December 19, 2017. The EIA will publish its weekly crude oil inventory report on December 20, 2017. Baker Hughes, a GE company, will release its US oil rig report on December 22, 2017.

All of these events could influence oil (UCO) prices this week. US oil (DBO) prices fell 0.1% last week due to bearish drivers. We discussed the drivers in Part 1 of this series. Lower oil (UWT) prices are bearish for oil producers (FXN) (XLE) like Goodrich Petroleum (GDP) and Stone Energy (SGY).

Will US Crude Oil Futures Be Range Bound This Week?

Bullish drivers for WTI crude oil futures  

WTI crude oil (USO) futures hit $58.95 per barrel on November 24, 2017—the highest level in nearly three years. Prices rose due to the production cut extension, lower global crude oil inventories, and the supply outage in Libya, Nigeria, Venezuela, and Iraq.

Any fall in US and Cushing oil inventories and higher compliance with production cuts could help oil (SCO) prices. A possible strike in Nigeria could also benefit oil prices.

Bearish drivers for WTI crude oil prices  

WTI oil (DWT) futures hit $26.21 per barrel on February 11, 2017—the lowest level in more than 13 years. Any increase in US crude oil production and a strong dollar (UUP) could cap the upside for oil prices this week.

Crude Oil Volatility Index 

The CBOE Crude Oil Volatility Index (OVX) fell 7.6% to 21.3 on December 15, 2017—near a three-year low. It suggests less volatility in oil (USO) prices. US crude oil prices closed above $57 per barrel seven times in the last ten trading sessions. It suggests that prices could trade around these levels unless there’s a real catalyst.

January US crude oil futures contracts were above their 50-day and 100-day moving averages on December 15, 2017. It suggests that prices could trade higher.

Read Will US Natural Gas Futures Fall More? and Gasoline Inventories and Crude Oil Production Impact Oil Prices for the latest updates on natural gas and oil.

Latest articles

18 Mar

Tilray Reports Its Fourth-Quarter Earnings


Tilray (TLRY) reported its quarterly earnings after the market closed. The company reported a total quarterly sales of $15.5, which increased nearly 203.8% year-over-year.

Earlier today, US tech giant Apple (AAPL) launched new versions of its iPad Air and iPad Mini. The company is set to hold a special event on March 25.

18 Mar

How Facebook Aims to Compete with Twitch


Facebook has stated that over 700 million of its users play games, watch gaming videos, and engage in gaming groups on its platform.

On March 18, President Trump tweeted, “GDP growth during the four quarters of 2018 was the fastest since 2005.” Let’s look at the data.

Today, Steel Dynamics released its first-quarter earnings guidance. It expects its first-quarter EPS to be between $0.88 and $0.92.

18 Mar

Why Amazon Is Interested in YES Network


Amazon (AMZN) recently teamed up with the Yankees and other investors to purchase the YES Network.