Crude Futures Pricing Affected by Supply and Rig Increase in the US

Posted in Top Headlines by on January 30, 2017

Many investors hoped that the OPEC and non-OPEC agreements to cut the production of crude oil would have a positive impact on the price of crude futures. This isn’t what is happening, as the rig count in the United States has increased again.

Overall Increase in U.S. Rig Count

Rig counts increased in Louisiana, North Dakota, Alaska, Texas, Oklahoma, and New Mexico. Other states reported no change in the rig count, but West Virginia, Arkansas, and Colorado all reported a decrease. All told, the United States rig count was 712, which is up by almost 100 rigs since last year at this time when the count was 619. This increase isn’t helping the price of crude oils.

Crude Future Prices Suffer on Increased Output

Currently, the price of WTI settled at $53.17 per barrel on Jan. 27. This is a gain of 1.4 percent from the beginning of the week, but it was down from a high that was $.63 greater on Thursday, Jan. 26. Keeping an eye on the supply that is coming from the U.S. will be important in upcoming weeks.

The price of Brent crude futures was down for the week by 1.3 percent to $55.49. This fluctuation seems to be partially because the demand for gasoline is on the decrease. Add in the increased production in the U.S. and an uncertainty about how the production cuts are faring and you have a recipe for a potentially volatile situation.

Where Are Crude Futures Heading?

Industry analysts seem to agree that crude futures prices are in a holding pattern. You can expect to see smaller fluctuations as the market adjusts to the supply variations that are currently occurring around the world.

How to Trade $10,000 of Oil with a Few Hundred Dollars

With an online forex trading platform you have the ability to trade with leverage of up to 100:1 buying power. That means that you could control an oil trading position of 1000 barrels of crude oil with only a couple hundred dollars. The price of energy changes daily, and you can take advantage of these market price fluctuations. With a live account your capital is at risk. Start today by opening a practice demo account.

Open Account Here

Learn How to Trade Oil Online With a $100,000 Demo Practice Account. Demo accounts are a great way to practice online trading in real market conditions without risking any money. Register Here and Start Trading Crude Oil Immediately!

Top Broker Bonus Offers

plus500_logo
Get up to 30% bonus on your first deposit! T&C apply. Your capital is at risk.
avatrade-logo
Limited time offer. Get up to 30% bonus on first deposit. T&C apply
easymarkets_logo
Up to $2,000 bonus based on first deposit amount