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Energy (NYSEARCA:XLE) was the only sector to see a decline as the stock market as a whole posted its best performance since November 2020 and crude oil posted its first straight weekly decline since December.
April WTI (CL1:COM) closed up 1.7% on Friday but fell 4.2% to $104.70/bbl over the week; The month-to-month contract is now down 9.5%, or $11, over the past two weeks as worries about global shortages fueled by Russian oil sanctions and the war in Ukraine have yet to materialize in the physical market.
U.S. natural gas (NG1:COM) prices rose 2.9% weekly to $4.863/MMBtu after a larger-than-usual weekly stock draw and short-term weather forecasts that point to low temperatures and relatively healthy gas demand. heating.
Essentially, oil markets remain tight, but “until we come to some sort of decision as to what Russia’s end goal is, you’re going to have a lot of sentiment and a lot of oil price volatility,” Tortoise portfolio manager Rob Tammel told Bloomberg, adding that Current oil prices include a geopolitical premium of at least $20 per barrel.
The International Energy Agency, which last year called for a halt to new oil, gas and coal projects to help the environment, warned this week of a “state of emergency” for global energy security, days after saying in its monthly report that potential losses Russian oil exports “cannot be underestimated.”
The IEA has published a 10-point plan to reduce consumption, including lowering speed limits on highways, car sharing, working from home, canceling air travel for business purposes, using trains instead of planes, and introducing a “car-free Sunday.” .”
Energy closed at the bottom of the weekly sector table, -3.8%, but the group is up 33% YTD.
Top 3 weekly gainers in energy and natural resources: NYSE: TRQ + 40.6%, EOSE + 30.9%, FLNC + 30.2%.
Top 10 Energy & Natural Resources Falling Week: NASDAQ: IMPP -34.3%, KLXE -34.1%, ICD -26.5%, IREN -24%, NEWP -23.3%, NESR -19 .2%, PBF -18.1%, IPI – 17.9%, METC -16%, DRQ -15.7%.
Source: barchart.com