Key energy events
The EIA (U.S. Energy Information Administration) is scheduled to release its oil and natural gas inventory data on June 5 and June 6. The data will likely be a short-term driver for oil and natural gas prices. Any disappointment in the US crude oil inventory report will likely be a concern for oil prices. If the weekly US crude oil production falls for the week ending May 31, it might boost oil prices.
Apart from the inventory data, the rig count report later next week will likely be important for the energy sector. Last week, the US oil rig count was at the lowest level since March 30, 2015. The oil rig count is expected to fall more. The report will be important for ETFs like the VanEck Vectors Oil Services ETF (OIH). So far in May, OIH has fallen 50.5%—the steepest decline among energy subsector ETFs. A decline of 8.5% in US crude oil prices and the lower oil rig count could be behind OIH’s decline.
This weekend, the outcome of the Gulf summit will be crucial for the heightened geopolitical tension in the Middle East. The outcome of the meeting will play an important role in oil prices and the Brent-WTI spread. Energy stocks like ConocoPhillips (COP) and Pioneer Natural Resources (PXD) might react to the meeting’s outcome.