SSgA Active Trust (XLE)

Source: Business Insider

Summary List Placement Crude oil looks set to finish this week with a third consecutive weekly decline and a key market sentiment indicator has turned negative for the first time this year. This is despite a jump in prices since the middle of the week after the blockage of the Suez Canal by a container ship that had run aground. The passage is a key shipping route for crude and refined products and news on Friday that the vessel may take weeks to dislodge gave the market further support. However, the short-term outlook for oil is looking volatile. The physical markets are showing signs of weakening, as refineries in key consumption hubs, such as China, shut down for seasonal maintenance and as a third wave of COVID-19 across Europe threatens to dampen demand across the region at the same time. However, Goldman Sachs analysts in a March 24 research note said they still see a clear path to higher oil prices by year-end, with a view that the price of Brent crude – the global benchmark – will reach $75 a barrel, from around $63 a barrel right now.

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Source: Benzinga

For the first time in many years, the Energy Select Sector SPDR Fund (NYSE: XLE ) is leaving the SPDR S&P 500 ETF Trust (NYSE: SPY ) in the dust as many oil and gas stocks have come roaring back to life. On Thursday, Bank of America analyst Doug Leggate released his quarterly deep dive into oil refiner stocks, and he sees plenty of upside remaining for top names in the space. After recently speaking with oil industry executives at Bank of America’s refining conference, Leggate said expectations for a widespread recovery in gasoline demand are finally becoming tangible. The latest EIA data indicates gasoline demand is in-line with pandemic highs of last summer during … Full story available on Benzinga.com

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Source: The Daily Rip

Tale of the Tape Happy Friday, folks! The market of stocks fought back and rallied higher after sliding early this morning. Cheers to that!! 🥂The Nasdaq Composite was down as much as 2.6% before flipping a U and closing up 1.55%. Every sector closed higher but energy was the strongest sector yet again. $XLE advanced…

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Source: Business Insider

Summary List Placement Oil prices soared Thursday in the wake of reports that major oil producers have agreed to keep their supply cuts intact through next month. OPEC and its allies had been discussing whether or not to restore as much as 1.5 million barrels a day of oil production. The group ultimately decided that it will leave output at current levels, according to a Bloomberg report . Saudi Arabia, meanwhile, committed to extend its voluntary cut of 1 million barrels of oil per day. The oil market officials meet via video-conference. The discussion took place at a time when recovery in the oil market is still taking hold after a plunge in demand because of the COVID-19 pandemic. Prices for Brent crude, the international benchmark, jumped as much as 5.3% to an intraday high of $67.47, with the gain later trimmed to 4.7%. The decision by OPEC+ was “incredibly bullish,” and Saudi Arabia’s decision “was shocking as it leaves them vulnerable to losing market share next month when the oil market is in deficit by a couple million barrels,” said Edward Moya, senior market analyst at Oanda, in a note.

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Source: ETF Trends

Oil producers and energy sector-related exchange traded funds have been picking up steam as investors look beyond the coronavirus pandemic to a broad economic recover. Next week, Exxon Mobil (NYSE: XOM) could shed light on how the industry faring, and some analysts are readying for a bullish outlook. Year-to-date, the Energy Select Sector SPDR (NYSEArca: XLE) has […] The post Energy Investors: Watch Exxon Mobil This Week appeared first on ETF Trends .

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Source: Zero Hedge

This Commodity Super-Cycle Could Be Unlike Anything We’ve Seen Before Authored by David Messler via OilP{rice.com, Commodity prices have been on the rise since late in the 3rd quarter of 2020. Signs that the global economy would rebound faster than anyone thought possible, in the early phase, has spurred purchases of critical components in the modern economy. I have discussed the reasons for this in a couple of OilPrice articles recently. In this article, “How High Will Oil Prices Go This Year?” , I discussed the impact the decline in drilling in shale plays was having on crude stocks, and resulting trend higher in prices. In the second article, “How Much Higher Can Oil Prices Go This Year” , the concept of Backwardation taking control of the oil market was the principal thesis of that article. In this scenario traders pull oil from storage to sell now, as opposed to storing for better prices in the future. Now we will tie this into the thesis proposed in an article last year near the absolute depths of the crash, about the start of a new commodities Super-Cycle .

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Source: Business Insider

Summary List Placement The energy sector has gained 17% in 2021 on expectations of an economic rebound and oil market recovery. Energy is the best-performing sector in the S&P 500 year-to-date. Fundstrat’s Tom Lee says energy could surge 66% if oil prices spike to $80 a barrel. Sign up here for our daily newsletter, 10 Things Before the Opening Bell . Wall Street is growing increasingly bullish on 2020’s worst-performing sector: energy. The sector has surged 17% in 2021 on expectations of an economic rebound and oil market recovery, and analysts anticipate further gains. It’s also the best performing sector in the S&P 500 year-to-date. Nuveen’s Saira Malik said on Tuesday that energy-related stocks have bottomed and should continue to improve on a relative basis. Meanwhile, equity strategists from Jefferies highlighted how energy has remained a “popular choice” among investors, with inflows totaling 13.5% of its asset base year-to-date. Now, Fundstrat’s Tom Lee says the sector could surge up to 66% if oil prices spike to $80.

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Source: ETF Trends

The energy sector is bustling on Monday, as the rally in crude oil prices approach a 13-month peak and help catalyze investor interest in the sector. With stocks like Exxon Mobil gaining more than 4.54% higher on Monday, the SPDR Energy Select Sector ETF (XLE) jumped 4.1% and was the largest winner among the SPDR ETFs […] The post Crude Oil And Gas ETFs Rally as Energy Stocks Swell appeared first on ETF Trends .

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Source: Zero Hedge

Crypto & Small Caps Surge, Dollar Shrugs Ahead Of Biden’s Budget Bonanza When the headline hit last night – from a Biden aide – that Biden’s stimulus spendfest was $2 trillion (or some suggested $3 trillion), markets lurched – bond yields spiked, small caps surged, tech tumbled, the dollar rallied, gold dumped, and crypto rebounded further. By the end of the day session, gold and the dollar had retraced their moves while stocks, bonds, and crypto extended their trend. Then late on stocks took a brief dive after NYTimes dropped a headline outlining Biden’s $1.9 trillion stimulus plan… One thing that markets may not like is that contrary to previous expectations that the “stimmy” check will be $2,000, Biden will instead propose additional $1,400 stimulus checks, “topping up the $600 checks that Congress approved in December.” Which apparently disappointed stocks… Still, the US equity markets massively diverged with Small Caps exploding higher as Big-Tech and the Dow and S&P drifted down, accelerating late on…

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Source: Zero Hedge

Bonds & Big-Tech Bid As Penny-Stock Buying-Panic Explodes Bucking the recent trend, Nasdaq surged as small caps were purged today… The Dow, helped by INTC today, clung to unchanged on the week but Nasdaq remains red… Utes and Tech were the best-performing sectors today (barbell much)… Source: Bloomberg Growth stocks rebounded today after some recent pummeling… and so did bonds as yields tumbled… Source: Bloomberg As Trumpeachment 2.0 was underway, 30Y bonds were aggressively bid at auction, dragging yields down to one-week lows… Source: Bloomberg It seems the death of the bond bull market was nothing but a fleshwound… But, what really matters is this malarkey – the total and utter explosion in speculative demand for trading penny stocks … And as Joe Saluzzi pointed out, 6 of the top 10 most active stocks yesterday were priced under $1 and combined for 2.6 billion shares or 18% of the entire stock market. And thanks to the Robinhood’rs, Bloomberg notes that the lowest priced stocks are outperforming in 2021 (so far)… “I thought it was pretty odd,” said Saluzzi, co-head of equity trading at Themis Trading. “I’ve been around for a long time, I’ve seen people in chat rooms and retail investors saying ‘we can make some money – it’s easy.’ There’s a risk it may not end well.” What is driving this speculative mania?

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