Key energy events
On March 13–14, the EIA (U.S. Energy Information Administration) is scheduled to release its oil and natural gas inventory data. The data will likely be the short-term driver for oil and natural gas prices. The EIA’s STEO (Short-Term Energy Outlook) report could be important for oil and natural gas prices. OPEC’s Monthly Oil Market Report and the International Energy Agency’s Oil Market Report will likely make the week eventful for oil prices.
Last week, a Reuters survey suggested a multiyear fall in OPEC’s oil output last month. Saudi Arabia’s oil minister expects the output for March and April to remain at 9.8 MMbpd (million barrels per day)—compared to 10.2 MMbpd in January.
Energy stocks respond to long-term changes in oil and natural gas prices. However, energy stocks are also impacted by short-term energy price movements. Last week, Murphy Oil (MUR), EQT (EQT), and Apache (APA) fell 3.4%, 5.8%, and 6%, respectively. US crude oil April futures rose 0.5%, while natural gas April futures rose 0.2%. The above events will likely impact broader market indexes like the S&P 500 Index (SPY).
The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and the Energy Select Sector SPDR ETF (XLE) invest in energy stocks. Any changes in oil and natural gas prices are expected to influence XOP and XLE, which fell -7.7% and 3.8%, respectively, last week.