Energy stocks rebound from pullback despite lower oil prices (NYSEARCA:XLE)

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Energy (XLE +3.1%) finds itself again at the top of the S&P sector ranking even though crude oil futures fell more than 2%extending the group’s YTD gain to 35% as investors focus on growing inflation fears despite crude’s one-day reprieve.

April WTI Crude (CL1:COM) firm -2.5% at $106.02/bbl after falling 12% on Wednesday, and May Brent (CO1:COM) colonized -1.6% at $109.33/bbl after falling 13.2% the previous day; both benchmarks had closed Tuesday at near 14-year highs.

Halliburton (HAL) +8.9%) and Baker Hughes (BKR +8.7%) finished among the top two winners of the S&P 500 and Chevron (CVX +2.7%) hit an all-time intraday high of $174.76 before slowing but ending with a solid gain.

Other big winners on Thursday include EOG +5.3%IFT +4.3%NOV +3.6%COP +3.6%PAA +3.4%PXD +3.2%XOM +3.1%FANG +3.1%VLO +2.8%NDV +2.7%.

ETFs: USO, UCO, SCO, BNO, XOP, VDE, OIH

Oil fell “as investors worry that stagflation risks could be a blow to the short-term outlook for crude demand,” said Ed Moya of Oanda. until the summer, which could lead to a destruction of demand for crude. .”

Oil jumped earlier this week to the highest since 2008, in part on fears that the loss of Russian flows could stretch an already tight market, but prices plunged on Wednesday after the United Arab Emirates reported that the OPEC+ could increase production faster than expected.


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Felix J. Dixon