24 Nov

Energy Sector Saw a Mixed Performance This Week

WRITTEN BY Nicholas Chapman

Crude oil leading on the upside

In the week starting November 20, 2017, crude oil (USO) (USL) prices are leading the rise in energy commodities. Crude oil prices rose from last week’s close of $56.71 per barrel on November 17 to $58.02 per barrel on November 22, an increase of more than 2% so far this week. Crude oil traded in a narrow range on Monday and Tuesday but moved sharply on Wednesday by ~2%.

Energy Sector Saw a Mixed Performance This Week

Natural gas leading on the downside

For the week starting November 20, 2017, natural gas (UNG) (BOIL) prices are leading on the downside. Natural gas prices fell from their last week’s close of $3.10 per MMBtu (million British thermal units) on November 17 to $2.97 per MMBtu on November 22, a decrease of more than 4% so far.

Unleaded gasoline and heating oil

Unleaded gasoline (UGA) prices are rising this week after last week’s decline. Unleaded gasoline prices rose from last week’s close of $1.74 per gallon on November 17 to $1.76 per gallon on November 22, an increase of 1.0%. Gasoline and heating oil prices impact refining companies (CRAK). Heating oil has fallen 0.66% so far this week. On November 22, 2017, heating oil closed at $1.94 per gallon.

Energy equities

With the mixed performance from natural gas and crude oil, the energy sector is showing a modest increase in the holiday-shortened week. As of November 22, the Energy Select Sector SPDR Fund (XLE), which represents an index of stocks across the energy sector, rose 0.39%.

Stocks that are leading the rise in XLE are Williams Companies (WMB), Helmerich and Payne (HP), TechnipFMC (FTI), Pioneer Natural Resources (PXD), and Newfield Exploration (NFX). These stocks are up 1.8%, 1.7%, 1.7%, 1.2%, and 1.2%, respectively, this week.

Falling stocks from XLE include Hess (HESS), Range Resources (RRC), Devon Energy (DVN), EQT (EQT), and Andeavor (ANDV). These stocks are down by 2.5%, 1.9%, 1.8%, 1.4%, and 1.3%, respectively, this week. In general, for the week starting November 20, XLE is underperforming the SPDR S&P 500 ETF (SPY). As of Wednesday, SPY rose 0.74% this week.

In this series

In this series, we’ll also look at the performance of energy subsectors. Specifically, we’ll look at the gainers and losers from the upstream and oilfield services. We’ll also analyze any news or developments behind the moves.

Let’s now start with upstream gainers from this week.

Latest articles

German chip maker Infineon Technologies has reportedly raised 1.55 billion euros (~$1.74 billion) in capital by selling its shares to fund its acquisition of Cypress Semiconductor (CY). Infineon has sold ~113 million new shares at 13.70 euros each.

As of June 18, Dunkin’ Brands (DNKN) was trading at $80.07, an 8.9% rise since reporting its first-quarter earnings on May 2. Also, DNKN was trading at a premium of 29.8% from its 52-week low of $61.69 and a discount of 1.6% from its 52-week high of $81.40.

19 Jun

Are Lower Oil Prices Weighing on ExxonMobil Stock?

WRITTEN BY Maitali Ramkumar

ExxonMobil (XOM) stock has fallen 7.1% in the second quarter so far. Let's review ExxonMobil's stock performance in comparison to oil price changes and equity market movements in the quarter.

19 Jun

As Facebook Unveils Libra, MSFT and CRM Join a Blockchain Group

WRITTEN BY Mayur Sontakke, CFA, FRM

On June 18, Facebook (FB) launched Libra, its own cryptocurrency. On the same day, CoinDesk published another piece of blockchain news that didn’t receive as much fanfare as Facebook’s Libra news. Was the timing a coincidence? We think not.

Uber Technologies (UBER) has picked Melbourne as another test site for its flying taxi service known as UberAir. The Australian city is the first international test site Uber has chosen for its flying taxi service. The addition of Melbourne brings the number of test locations Uber has picked for its UberAir service to three.

Lyft (LYFT) and Uber Technologies (UBER) are pushing back against California legislation that would require them to recognize their drivers as employees rather than independent contractors. The legislation would require companies like Lyft to give their drivers the compensation and benefits spelled out under California’s employment regulations.

172.31.71.127