US crude oil
Today at around 6:41 AM, US crude oil May futures were almost unchanged. In today’s trading, US crude oil active futures’ 200-day moving average at $61.66 will be an important support zone. On April 2, US crude oil active futures decisively broke above this key moving average, the first time since October 22, 2018. This week, the closing level of $60.90 will be important for US crude oil.
Upstream stocks near 200-day moving average
On April 3, upstream stock Hess Corp (HES) closed just 0.1% below its 200-day moving average. Cabot Oil & Gas (COG) was 5.4% above its 200-day moving average. Other top holdings of the S&P 500 Index (SPY) in the upstream space that were trailing the most below their 200-day moving average are Cimarex Energy (XEC) and Anadarko Petroleum (APC). In the last trading session, XEC and APC closed 20.5% and 22.2% below their 200-day moving averages, respectively.
On April 3, the Brent-WTI spread fell to its second-lowest level since August 21, 2018. The contraction in the Brent-WTI spread might limit any upside in US crude oil exports, a positive development for oil’s upside. However, at the same time, upstream stock ConocoPhillips (COP) might be an underperformer in the upstream subsector.