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Upstream Stocks Might Continue to Build on Last Week’s Gains

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XOP rose 1.9% last week

In the week ending September 28, upstream energy stocks continued their winning streak for the third consecutive week. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP), which includes 56 upstream companies, rose 1.9% last week. Overall, XOP gained 2.2% last month. Last week, XOP’s gains were due to the rise in commodity prices and the narrowing of the WTI spreads.

US crude oil went above $73 per barrel by the end of last week due to supply concerns amid looming Iran sanctions. US crude oil rose 3.5% and ended the week at $73.3 per barrel. On the other hand, US natural gas rose 1.0% last week and ended at $3.01 per MMBtu (million British thermal units). For a recent update on natural gas prices, read Inventory Data Might Push Natural Gas near $3.2 Next Week.

Among the top upstream stocks by market capitalization, EOG Resources (EOG), Anadarko Petroleum (APC), Occidental Petroleum (OXY), and ConocoPhillips (COP) rose 6.8%, 4.3%, 3.2%, and 1.5%, respectively.

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Will upstream stocks continue to rise this week?

US crude oil and natural gas had a strong start this week. WTI went above $75 per barrel. Iran sanctions are still a big supply concern. Positive momentum in natural gas and crude oil prices and the narrowing of the spreads should continue to drive upstream energy stocks higher this week.

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