equitieswatch
Saturday, January 21, 2023
About us
Advertise
  • Home
  • Stock Market
  • Finance
  • Cryptocurrency
  • Commodities
No Result
View All Result
Equitieswatch.com
No Result
View All Result

Energy stocks rise, oil falls only modestly after planned reserves release (NYSEARCA:XLE)

by equitieswatch
April 9, 2022
in Finance

SlavkoSereda/iStock via Getty Images

The S&P 500 energy sector (NYSEARCA:XLE) jumped 3.2% for the week even as crude oil futures fell, as several countries joined the U.S. in releasing crude reserves.

WTI crude for May delivery (CL1:COM) closed the week -1% at $98.26/bbl, a modest move in light of the commitment by member nations of the International Energy Agency to release tens of millions of barrels from their strategic reserves.

Analysts say the unprecedented oil releases, expected to total 240M barrels, will depress prices in the short term but support them at a later point when the countries are forced to buy back oil to refill their stockpiles.

“The sentiment-driven selloff [in oil] will give way, and fundamentals will reassert themselves, especially as more market participants start fretting about how the U.S. administration will replenish the SPR drawdown,” SPI Asset Management said, according to the Wall Street Journal.

“There’s some concern that by artificially lowering prices, you are only going to increased demand and that’s going to burn off that supply pretty quickly,” according to Price Futures Group’s Phil Flynn.

The release also could deter producers, including OPEC and U.S. shale producers, from accelerating output increases, ANZ Research analysts said.

Meanwhile, the harsh COVID-19 lockdown of Shanghai by Chinese authorities has been extended, meaning “the business metropolis with its 25M inhabitants, which accounts for ~4% of Chinese oil demand, is condemned to remain at a standstill,” Commerzbank’s Carsten Fritsch told MarketWatch.

The price of natural gas (NG1:COM) surged nearly 10% on the week to close at $6.28/MMBtu, the highest in more than 13 years, in part based on anticipation of increased demand for U.S. liquefied natural gas in Europe, as countries seek alternatives to Russian gas.

The energy sector’s 3.2% gain for the week ranked second among all S&P sectors.

The week’s top 10 gainers in energy and natural resources: NYSE:NAT +30.3%, IPI +29.5%, SND +26.5%, NRT +23.1%, EURN +17.9%, UEC +17.5%, TNK +15.8%, TNP +15.5%, HNRG +14.2%, VOC +13.1%.

The week’s top 5 decliners in energy and natural resources: NASDAQ:LITM -32.3%, LAC -20.2%, ADSE -19.6%, AREC -17.2%, NINE -17%.

Source: Barchart.com

Source link

YOU MAY ALSO LIKE

The U.S. is hurtling toward a recession. Here’s the best-case scenario for how it could play out—and the worst

Bitcoin Breaches $20,000 for the First Time Since 2020

ShareTweetPin

Search

No Result
View All Result

Recent News

Oil slips further on demand, financial market worries By Reuters

Oil Sinks Further Amid China Concerns, Weakened Economic Prospects By Investing.com

October 25, 2022
Gold Up, Set for Second Weekly Gain as Dollar Falls from 20-Year High By Investing.com

Gold Pressured Near $1,650, Copper Muted on Economic Fears By Investing.com

October 25, 2022
Explainer-What would be the impact of Russian oil sanctions in Europe? By Reuters

Oil prices edge higher as U.S. dollar eases By Reuters

October 25, 2022
Equitieswatch.com

Equitieswatch.com is your Stock Market, Finance, Forex, Cryptocurrency, Business, NFT News Website. We provide you with the latest breaking news and videos straight from the Business industry.

  • Home
  • About us
  • Contact
  • Privacy Policy

© 2022 www.equitieswatch.com

No Result
View All Result
  • Home
  • Stock Market
  • Finance
  • Cryptocurrency
  • Commodities

© 2022 www.equitieswatch.com