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OPEC Meeting: Crude Oil Prices and Energy Sector Pressure S&P 500

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S&P 500’s performance  

The S&P 500 fell ~0.63% to 2,749.76 on June 21. The decline in crude oil prices pressured energy stocks, which in turn pressured the S&P 500 ahead of the OPEC meeting. Eight out of the 11 major sectors in the S&P 500 fell on June 21.

The SPDR S&P 500 ETF (SPY) fell ~0.63% to $274.24. SPY seeks to follow the S&P 500 Index’s performance. E-Mini S&P 500 futures advanced 0.22% from the previous settlement in early morning trade on June 22.

S&P 500’s sectoral performance  

The energy, industrials, and materials sectors fell 1.9%, 1.3%, and 1.1%, respectively, on June 21. These sectors pressured SPY the most.

The energy sector accounts for ~6% of the S&P 500 Index. The Energy Select Sector SPDR ETF (XLE) fell ~1.9% to $73.68. XLE represents the S&P 500 Index’s energy sector. 

Commodities  

August WTI crude oil futures fell 0.3% to $65.54 per barrel. Brent oil futures fell 2.26% to $73.05 per barrel. Prices fell ahead of the OPEC meeting. The two-day meeting began on June 22, at 4.00 AM EST. Investment bank Jefferies expects major oil producers to increase crude oil supplies between 450,000 bpd (barrels per day) and 750,000 bpd. On June 21, the Saudi Arabian energy minister said that major oil producers need to increase output by 1,000,000 bpd. Ecuador’s oil minister expects an output increase of ~600,000 bpd.

The United States Oil ETF (USO) rose ~0.23% to $13.31 on June 21. USO aims to track active WTI crude oil futures’ performance. Brent and WTI oil futures contracts rose ~1% and 1.1%, respectively, from the previous settlement in early morning trade on June 22.

July US natural gas futures contracts rose 0.4% to $2.97 per MMBtu (million British thermal units) on June 21. Prices advanced due to warmer-than-usual weather forecasts. The United States Natural Gas ETF (UNG) rose 0.3% to $24.1. UNG seeks to track active natural gas futures.

July US natural gas futures contracts rose 0.3% from the previous settlement in early morning trading on June 22.

The iShares S&P GSCI Commodity-Indexed Trust (GSG) fell 0.4% to $16.97 on June 21. GSG seeks to track an index composed of a diversified group of commodities futures.

Series overview  

In this series, we’ll cover US natural gas inventories, production and consumption, and natural gas price forecasts.

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