On November 30–December 7, oilfield services stock Superior Energy Services (SPN) fell the most on our list of energy stocks. The VanEck Vectors Oil Services ETF (OIH) fell 6.6%—the most among the major energy subsector ETFs that we discussed in Part 2.
Our list of energy stocks also included the following plus a few integrated energy stocks:
Oilfield services stocks
McDermott International (MDR), Rowan Companies (RDC), and Noble (NE) were second, third, and fifth on our list of the top energy losses. The concern surrounding a slowdown in US oil exploration by March 2019 might have dragged these oilfield services stocks.
Last week, the WTI-WCS (Western Canada Select) spread contracted by more than ~$10 per barrel. In PADD 2 (Petroleum Administration for Defense Districts) or the Mid-Continent, PBF Energy has ~19.2% of its throughput capacity. Canadian oil accounts for 99% of Midwest refiners’ input. So, the contraction in the WTI-WCS spread could have a negative impact on PBF Energy’s refinery margin.
Energy commodities and the broader market
Last week, US crude oil January futures rose 3.3%. Natural gas January futures fell 2.7%, while the S&P 500 Index fell 4.6%. These energy underperformers also underperformed energy commodities and the broader market during this period.
Next, we’ll discuss the oil-tracking ETFs.