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Energy was the only sector gainer among the 11 S&P sectors this week, as Russia’s planned production cut next month in retaliation for Western sanctions capped crude’s rise to more than 8% for the week.
From Russia The move was largely expected, and most analysts have “already scoredRussian production has fallen between 700,000 and 900,000 bbl/day this year, according to Rebecca Babin, a senior energy trader at CIBC Private Wealth US.
Previous month Nymex crude (CL1:COM) for March delivery closed +8.6% at $79.72 for its best weekly result since October, and April Brent crude (CO1:COM) closed +8% to $86.39/bbl, both snapping back-to-back weekly losses.
Meanwhile, Nymex (NG1:COM) natural gas for March delivery snapped a seven-week losing streak, ending +4.3% at $2,514/MMBtu.
ETFs: (NYSEARCA:USE), (BNO), (UCO), (SCO), (BOD), (DRIP), (GUSH), (USOI), (NRGU)
The consensus among oil watchers is for crude prices to be lower this year, and commodity bull Goldman Sachs this week cut its 2023 average Brent spot price forecast to $92/bbl from its previous outlook. of $98/bbl of oil, and didn’t hit $100 until December. while also lowering its 2023 WTI spot price forecast to $86/bbl from $92/bbl previously.
But OPEC sources told Reuters this week they believe an oil price rebound this year is more likely, with a growing number seeing a possible return to $100/bbl.
Reuters said it had spoken privately with five officials from OPEC countries about the outlook for $100 oil, three of whom believe oil is more likely to rise in 2023 than fall and two predict prices will return. at 100 dollars.
The lifting of China’s COVID restrictions should boost oil demand growth in 2023, while OPEC members are pumping nearly 1 million barrels a day less than their target, according to the group’s own figures and other estimates. .
The top oil and gas ETF: the Energy Select Sector SPDR Fund (NYSEARCA:XLE) – closed +5% this week.
Top 10 gainers in energy and natural resources over the past 5 days: (New York Stock Exchange:DHT) +22.5%(NGL) +20.2%(WFRD) +19.1%(ABORT) +17.1%(FLOW) +15.9%(BP) +15.6%(STNG) +14.8%(DFLI) +14.6%(NM) +13.8%(EQNR) +13.4%.
Top 5 decliners in energy and natural resources over the last 5 days: (ODV) -23.2%(AZRE) -18.2%(CMP) -18.1%(FCEL) -16.1%(FEMA) -15.2%.
Source: Barchart.com