Energy reaches the top of the current S&P sector ranking, with oil prices helped by an agreement among European Union leaders on a € 750B fund to shore up their coronavirus-affected economies, raising demand prospects made out of fuel.
Continued gains in crude oil futures are accompanied by gains in gasoline and natural gas futures; WTI Crude (CL1: COM) + 3.1% at $ 42.09 / bbl, its highest level since March 6; RBOB gasoline (XB1: COM) + 3.8% at $ 1,276 / gal; Nymex Natural Gas (NG1: COM) + 1.5% at $ 1,666 / MMBtu.
The European stimulus “really seems to have set the stage for energy recovery,” says Phil Flynn of Price Futures Group. “The expectation is if they can achieve this across all individual governments and the approval process there will be an increase in demand for oil.”
The Energy Select Sector SPDR (XLE fund) + 6%) is on its way to its best day since June 5, while the SPDR S&P Oil & Gas Exploration & Production (XOP) fund + 6.9%) is ready for your best daily presentation from June 8.
If XLE keeps its current earnings at $ 38.40, it would cross its 10-day and 100-day SMA, only slightly below the 50-day SMA.
Today’s top five winners in the S&P 500 are all in the oil and gas group: OXY + 12.3%DVN + 11.1%, APA + 9.9%XEC + 9.6%, FANG + 8.6%.
Big oil names enjoy huge profits: CVX + 6.6%XOM + 5.5%BP + 5.5%, RDS.A + 4%.
Also: NBR + 18.9%, YE + 17.7%, ENLC + 9.7%, ITS + 8.5%, PAA + 7.9%OKE + 6.7%.
ETF: USO, XLE, UNG, UGAZ, UCO, DGAZ, VDE, OIH, BGR, ERX, BNO
