Energy subsector ETFs

In the week ending June 7, major energy subsector ETFs had the following performances:

  • The VanEck Vectors Oil Services ETF (OIH) rose 3.7%.
  • The VanEck Vectors Oil Refiners ETF (CRAK) rose 1.5%.
  • The Alerian MLP ETF (AMLP) rose 1.1%.
  • The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 0.9%.

S&P 500 Might Have Helped Energy Subsector ETFs to Rise

S&P 500 and energy ETFs

Last week, US crude oil prices rose 0.9%, while natural gas active futures fell 4.8%. With mixed sentiments in energy commodity prices, the S&P 500 Index (SPY) rose 4.4%, an important factor for these ETFs’ price performance. Last week, the oil rig count fell to a new one-year low. However, based on the relationship between oil prices and the oil rig count, the rig count might bottom out by June, a positive development for the oilfield services subsector.

Moreover, last week, Brent crude oil futures outperformed WTI crude oil active futures. The expansion in the Brent-WTI spread could be positive for US downstream stocks. US downstream stocks account for 27.7% of CRAK.

Energy sector performance

Last week, the Energy Select Sector SPDR ETF (XLE) rose 4.3%. XLE had the fourth-smallest rise among the sector-specific SPDR ETFs under review. An upside in the equity market might have pushed XLE’s returns despite the mixed sentiments in energy commodities. The Materials Select Sector SPDR ETF (XLB) rose 9.1% and outperformed SPDR ETFs. All of the sector-specific SPDR ETFs closed in the green last week.

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