X
<

How the S&P 500 Has Fared in September

PART:
1 2 3 4 5 6 7 8 9
Part 9
How the S&P 500 Has Fared in September PART 9 OF 9

These Factors Have Affected the Energy Sector

Energy sector

The energy sector has given a poor performance so far in 2017. The Energy Select Sector SPDR Fund (XLE), which tracks the performance of the energy sector, fell nearly 10% on a year-to-date basis, as of September 28, 2017. However, since August 18, 2017, it has recovered gradually.

These Factors Have Affected the Energy Sector

Interested in CVX? Don't miss the next report.

Receive e-mail alerts for new research on CVX

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Between August 18, 2017, and September 28, 2017, the ETF rose nearly 10.6%. The recovery in the energy sector was mainly supported by the recovery in crude oil (USO) (UCO) and natural gas (UNG) prices. Both the WTI crude oil active futures and natural gas active futures rose 9.3% and 3.8%, respectively, between August 18 and September 28, 2017.

On September 28, 2017, crude oil was trading at $51.50, which is gradually moving towards its 2017 high of $54.45. Many market participants and strategists expect that crude oil might cross over its 2017 highs in the near future.

However, the performance of crude oil mainly depends on OPEC (Organization of Petroleum Exporting Countries) production decisions, demand outlook, and the situation in Middle East economies. If these factors are favorable, then we might see an upside in the crude oil market, which could help the energy sector in the near term.

Major holdings of the energy sector

ExxonMobil (XOM), Chevron (CVX), and Schlumberger (SLB) fell nearly 8.9%, 0.2%, and 18.4%, respectively, on a year-to-date basis, as of September 28, 2017.

You may be interested to read, Is the Market Showing a Gradual Crackdown?

X

Please select a profession that best describes you: