Key energy events
The EIA (U.S. Energy Information Administration) is scheduled to release its oil and natural gas inventory data on June 19 and June 20. 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 June 14, 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 February 2, 2018. The oil rig count might bottom out this month. The report will be important for ETFs like the VanEck Vectors Oil Services ETF (OIH). Last week, OIH fell 2.9%, the second-largest fall among energy subsector ETFs. A decline of 2.7% in US crude oil prices and the lower oil rig count could be behind OIH’s decline.
This week, the heightened geopolitical tension in the Middle East will play an important role for the Brent-WTI spread. Energy stocks like ConocoPhillips (COP) and Pioneer Natural Resources (PXD) might react to the Brent-WTI spread movement.