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Energy stocks closed a mid-level week in solid fashion, as oil traders who grappled with concerns about the global demand outlook may finally see signs of tightening in the oil market.
Saudi Arabia and Russia started the week declaring Fresh production cut This would bring the total cuts by OPEC+ to 5 million barrels per day, or about 5% of global oil demand.
Supporting prices this week, US crude inventories fell more than expected and gasoline inventories recorded a significant drop, the US Energy Information Administration said.
But the gains have been capped as the Fed appears to be on track for more interest rate increases, possibly at its policy meeting later this month.
And while Saudi Arabia limits its production, supply increases elsewhere; Iran, for example, is increasingly circumventing US sanctions Oil shipments amount to 1.6 million barrels per day on average in May and June, according to Kpler and Petro Logistics, more than double the level of nearly a year ago and the highest since 2018.
Separately, the Biden administration said late Friday that it would buy another 6 million barrels of crude oil for the Strategic Petroleum Reserve.
Nymex (CL1:COM) crude oil for August delivery gained more than $2.00/bbl on Friday to push the US benchmark +4.5% For the week, it reached $73.86 per barrel, its highest settlement since May 24, while Brent Crude Oil for September (CO1: COM) closed the week. +4% to $78.47 a barrel, its best settlement since May 1.
US Natural Gas Futures (NG1:COM) closed -7.7% For the week, it settled at $2.58/MMBtu, as volatile weather across much of the US complicated the demand outlook.
ETFs: (NYSEARCA: Usage), (BNO), (UCO), (SCO), (DBO), (USL), (DRIP), (GUSH), (USOI), (NRGU), (UNG), (UGAZF), (BOIL), (COLD), (UNL), (FCG)
Top Energy Sector ETF (New York: XLE) finished the week -0.5%placing it in the middle of the pack among 11 S&P sectors, but it closed +2.1% On Friday, its biggest single-day gain in a month.
Oilfield services companies (OIH) ranked Schlumberger (SLB), Halliburton (HAL) and Baker Hughes (BKR) as three of the four biggest gainers on Friday on the S&P 500, +8.6%And +7.8% And +4.8%respectively.
Top 10 gainers in energy and natural resources over the past 5 days: (RIG) +20.4%(Wave) +19.2%(OII) +18.3%(Northeast) +18.1%(Do) +17.1%(TDW) +16.4%(NRT) +16.3%(nine) +13.9%(IPI) +13.2%(LBRT) +12.4%.
Top 5 losses in energy and natural resources over the past 5 days: (ORGN) -12.7%(PPSI) -11.8%(NPWR) -10.7%(MARPS) -9.9%(MTR) -9.3%.
Source: Barchart.com