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:
- the Energy Select Sector SPDR ETF (XLE)
- the Alerian MLP ETF (AMLP)
- the VanEck Vectors Oil Refiners ETF (CRAK)
- the SPDR S&P Oil & Gas Exploration & Production ETF (XOP)
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.
PBF Energy (PBF) was the fourth-largest loss among our list of energy stocks. The VanEck Vectors Oil Refiners ETF (CRAK) fell 4.3%—the second-highest decline among major energy subsector ETFs.
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.