Crude oil and natural gas are rising
For the week starting January 1, 2018, crude oil prices have risen ~2%, from last week’s close of $60.42 per barrel to $61.63 per barrel on January 3, 2018. Even natural gas (UGAZ) (DGAZ) (BOIL) prices rose from their last week’s close of $2.95 per mmBtu (million British thermal unit) on December 29, 2017, to $3.01 per mmBtu on January 3, 2018, an increase of almost 1%.
Gasoline is sluggish, heating oil rises
For the week starting January 1, 2018, unleaded gasoline (UGA) prices have risen marginally from their last week’s close of $1.796 per gallon on December 29, 2017, to $1.797 per gallon on January 3, 2018, an increase of ~0.1%. Two weeks before, gasoline prices regained their 50-day moving average, which currently stands at $1.742. Even heating oil (UHN) prices have risen this week by ~1%. Gasoline and heating oil prices impact refining companies (CRAK).
With the positive performance from all energy commodities, energy stocks are showing some strength this week. As of January 3, 2018, the Energy Select Sector SPDR ETF (XLE), which represents an index of stocks across the energy sector, rose ~3.2%.
Stocks that are leading the rise in XLE are the following:
- Apache (APA): rose 7.4%
- Noble Energy (NBL): rose 6.4%
- Baker Hughes (BHGE): rose 6%
In general, for the week starting January 1, 2018, XLE is outperforming the SPDR S&P 500 ETF (SPY). As of January 3, 2018, SPY has risen 1.4% for the week.
In this series
Having analyzed the performance of the broader energy sector in the current week, we’ll look at the performance of energy sub-sectors in the rest of this series. Specifically, we’ll look at the gainers and losers from the integrated energy and refining and marketing sectors. We’ll also try to analyze any news or developments behind the moves.
Let’s start with the refining and marketing gainers for this week.