Energy Sector Underperformed S&P 500 in Short Holiday Week

Unleaded gasoline and heating oil

Unleaded gasoline (UGA) prices rose last week after falling the previous week. They’ve risen from $1.74 per gallon on November 17, 2017, to $1.76 per gallon on November 23, 2017, an increase of 0.98%. Gasoline and heating oil prices impact refining companies (CRAK). Heating oil fell 0.45% through the middle of last week. As of November 23, 2017, heating oil closed at $1.94 per gallon.

Natural gas

For the week that started November 20, 2017, natural gas (UNG) (BOIL) prices were leading on the downside. Prices fell from the previous week’s close of $3.10 per mmBtu (million British thermal units) on November 17, 2017, to $2.90 per mmBtu on November 23, 2017, a decrease of more than 6%.

Energy Sector Underperformed S&P 500 in Short Holiday Week

Crude oil

For the week of November 20, 2017, crude oil (USO) (USL) prices were leading the rise in energy commodities. Prices rose from the previous week’s close of $56.71 per barrel on November 17, 2017, to $58.38 per barrel on November 23, 2017, an increase of 3%. Crude oil traded in a narrow range on Monday and Tuesday last week but moved strongly on Wednesday, November 22, 2017, by ~2%.

Heating oil fell 0.45% last week. As of November 23, 2017, heating oil closed at $1.94 per gallon.

Energy equities

With the mixed performances of natural gas and crude oil, the energy sector showed a modest increase in the holiday-shortened week. As of November 22, 2017, the Energy Select Sector SPDR ETF (XLE), which represents an index of stocks across the energy sector, rose 0.39%.

Stocks that led the rise in XLE last week are Williams Companies (WMB), Helmerich and Payne (HP), TechnipFMC (FTI), Pioneer Natural Resources (PXD), and Newfield Exploration (NFX). These stocks rose 1.8%, 1.7%, 1.7%, 1.2%, and 1.2%, respectively, at the mid-point of last week.

Declining stocks from XLE are Hess (HES), Range Resources (RRC), Devon Energy (DVN), EQT (EQT), and Andeavor (ANDV). These stocks fell 2.5%, 1.9%, 1.8%, 1.4%, and 1.3%, respectively, at the mid-point of last week.

In general, for the week starting November 20, 2017, XLE was underperforming the SPDR S&P 500 ETF (SPY). As of Wednesday, November 22, 2017, SPY had risen 0.74% so far that week.

In this series

Having analyzed the performance of the broader energy sector for the first half of last week, we’ll now look at the performances of the energy subsectors. Specifically, we’ll look at the gainers and losers from the upstream and oilfield services sectors. We’ll also look at any news or developments behind the moves.