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Crude Oil Prices and the Energy Sector Support the S&P 500

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Nov. 20 2020, Updated 4:23 p.m. ET

S&P 500’s performance  

The S&P 500 rose ~0.1% to 2,730.13 on May 14 due to the rise in crude oil prices and energy stocks. Four out of the ten key sectors in the S&P 500 rose on May 14.

The SPDR S&P 500 ETF (SPY) rose ~0.1% to $272.95 on May 14. SPY seeks to track the S&P 500 Index’s performance.

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Sectoral performance

The energy, healthcare, and materials sectors rose 0.69%, 0.66%, and 0.39%, respectively, on May 14. These sectors supported SPY the most on May 14.

The energy sector accounts for ~6.3% of the S&P 500 Index. The Energy Select Sector SPDR ETF (XLE) rose 0.7% to $77.26 on May 14. XLE represents the S&P 500 Index’s energy sector.

The sentiment in the equities and commodities markets could impact each other depending on the magnitude of the moves and various fundamental factors that are affecting each market.

Commodities 

June WTI oil futures rose 0.4% to $70.96 per barrel on May 14. OPEC released its Monthly Oil Market Report on May 14. OPEC estimated that OECD crude oil inventories dropped in March. Crude oil demand is expected to rise in 2018. The bullish news supported oil prices. The United States Oil ETF (USO) rose 0.9% to $14.38 on May 14. USO targets to follow active WTI oil futures’ performance.

June US natural gas futures rose 1.3% to $2.84 per MMBtu (million British thermal units) on May 14. Prices rose due to warm weather forecasts, which could boost natural gas demand. The United States Natural Gas ETF (UNG) rose 0.8% to $23.13 on the same day. UNG aims to follow active natural gas futures’ performance.

The iShares S&P GSCI Commodity-Indexed Trust (GSG) rose 0.7% to $17.9 on May 14. GSG aims to track an index composed of a diversified group of commodities futures.

In this series 

In this series, we’ll discuss the US and Iran’s crude oil production. We’ll also discuss US crude oil exports and some crude oil price forecasts.

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