Energy reserves increase, oil drops only slightly after reserves are released as planned (NYSEARCA: XLE)

Commodity energy market data analysis: on-screen charts and quotes.  US WTI crude oil price analysis.  Incredible discounts over the last 20 years.

SlavkoSereda / iStock via Getty Images

S&P 500 energy sector (NYSEARCA:XLE) rose 3.2% for the week even though Crude oil futures fellas several countries joined the US in releasing crude oil reserves.

WTI crude oil delivered in May (CL1: COM) closed for the week -first% at $98.26 a barrel, a modest move based on the commitment of member states of the International Energy Agency to release tens of millions of barrels from their strategic reserves.

Analysts say the unprecedented oil release, expected to total 240 million barrels, will bearish in the short term but support them later when countries are forced to buy back oil to refill their reserves.

“Selling due to love [in oil] will give way and fundamentals will reassert themselves, especially as many market participants begin to wonder how the US administration will supplement the SPR reduction,” said SPI Asset Management, according to a report. The Wall Street Journal.

“There is some concern that by artificially lower the priceyou’re just going to increase demand, and that will burn through that supply pretty quickly,” according to Phil Flynn of Price Futures Group.

The announcement could also deter producers, including OPEC and US shale producers, from accelerating output increases, analysts at ANZ Research said.

Meanwhile, the Chinese authorities’ harsh COVID-19 lockdown in Shanghai has been extended, which means “the business metropolis with 25 million residents, accounting for ~4% of China’s oil demand, supposedly still deadlocked,” said Commerzbank’s Carsten Fritsch MarketWatch.

Natural gas prices (NG1: COM) is up nearly 10% on the week to close at $6.28/MMBtu, the highest in more than 13 yearspartly on anticipation of increased demand for US 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.

Top 10 gainers of the week in the energy and natural resources sector: 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 5 biggest decliners of the week in terms of energy and natural resources: NASDAQ:LITM -32.3%, LAC -20.2%, ADVERTISEMENT -19.6%, AREC -17.2%, RIPE -17%.


Source link


News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button