Energy was the only sector to gain during the week as crude oil prices rebounded (NYSEARCA:XLE)
Energy was the only sector that gained among the 11 S&P sectors this week, as Russia cuts production as planned next month in retaliation for Western sanctions that limited crude’s more than 8% gain for the week.
of Russia The move was largely expected and most analysts were “was penciled in“Russian production is down 700,000 to 900,000 bpd this year,” said Rebecca Babin, senior energy trader at CIBC Private Wealth US.
Nymex crude oil last month (CL1:COM) delivery in March +8.6% to $79.72 for the best week since October and April Brent crude (CO1:COM) settled +8% to $86.39/barrel, both of which offset consecutive weekly losses.
Meanwhile, natural gas Nymex (NG1:COM) for March delivery broke 7-week losing streak, ended +4.3 % to $2,514/MMBtu.
ETFs: (NYSEARCA:USO), (BNO), (UCO), (SCO), (DBO), (Drip), (EXTRUSION), (USOI), (NRGU)
Consensus among oil watchers is lower crude oil prices this year and commodities bullish Goldman Sachs this week average Brent spot price forecast cutt for 2023 to $92/bbl from the previous outlook of $98/bbl of oil – and not reaching $100 until December – while lowering the WTI spot price forecast for 2023 to $86 dollars/barrel from $92/barrel previously.
But OPEC sources told Reuters this week that they believe Oil price recovery is more likely this yearwith increasing numbers seeing the possibility of a return to $100/bbl.
Reuters said it spoke privately with five OPEC country officials about the $100 oil price outlook, with three saying oil is more likely to rise in 2023 than fall, and two predict prices will go back to the $100 level.
China’s lifting of COVID-related restrictions will boost oil demand growth in 2023, while OPEC members are pumping nearly 1 million bpd less than their target, according to data released by OPEC. the group itself and other estimates.
Top Oil and Gas ETF – Energy Select Sector SPDR Fund (NYSEARCA:XLE) – closed +5% this week.
Top 10 energy and resource stocks that have increased in the past 5 days: (NYSE:University) +22.5%(NGL) +20.2%(WFRD) +19.1%(BORR) +17.1%(FLUSH) +15.9%(BP) +15.6%(STNG) +14.8%(DFLI) +14.6%(NM) +13.8%(EQNR) +13.4%.
Top 5 energy and resource sectors with the strongest decline in the past 5 days: (ODV) -23.2%(AZRE) -18.2%(CMP) -18.1%(FCEL) -16.1%(FEAM) -15.2%.
Source: Barchart.com