In the week ending June 14, oilfield services stock McDermott International (MDR) rose the most among the stocks in the energy space. The stock is included in the following ETFs:
Last week, MDR outperformed the energy sector for the second consecutive week. On June 5, MDR announced, “CCS JV, a joint venture between McDermott, Saipem and Chiyoda, has reached full agreement for a contract with Anadarko Petroleum Corporation for the Mozambique Area 1 Liquefied Natural Gas Development.” On the same day, MDR’s stock prices rose more than 5%.
On June 13, MDR announced that “it has been awarded a sizeable technology contract by Ningbo Union King Polyester Material Limited for the technology license, process design engineering, and operator training services for a large-scale, grassroots 1,600 KTA paraxylene (pX) plant at Ningbo Union King’s petrochemicals facility in Ningbo, China.” On June 13, MDR’s stock price rose 2.2%.
Other strong performers
Midstream stocks Plains All American Pipeline (PAA) and Enterprise Products Partners (EPD) rose the second and third most in the sector, while upstream stock Occidental Petroleum (OXY) had the fourth-highest rise among energy stocks last week. On June 10, PAA and Phillips 66 (PSX) announced that they entered a joint venture to construct the Red Oak Pipeline. On the same day, PAA’s stock prices rose 1.8%.
Valero Energy (VLO) rose the fifth most among energy stocks. On June 14, Valero announced that it will report its Q2 2019 earnings result on July 25. Moreover, on the same day, the Brent-WTI spread expanded 47 cents following the attack on tankers in the Middle-East. VLO is sensitive to the Brent-WTI spread.