|Bid||10.07 x 900|
|Ask||10.99 x 800|
|Day's Range||10.89 - 10.98|
|52 Week Range||8.07 - 14.16|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.75|
|Expense Ratio (net)||0.75%|
After cratering in the last three months of 2018, crude oil prices are back on the rise; the rebound in oil prices is welcome news for oil stocks -- and oil ETFs, asserts Chris Preston, editor of Cabot Wealth Network.
Given the clouds over the outlook for oil investment, investors should place their bet on oil ETFs cautiously or could take advantage of the quick turn in sentiment with the help of leveraged or inverse ETFs.
News of expected output cuts by Russia, Saudi Arabia and Canada as well as U.S.-Sino trade short-term trade truce boosted Oil and energy ETFs.
Although commodities might lack the luster and hype of the stock and bond markets, they nonetheless performed impressively throughout most of 2018. Indeed, ETF.com reports that strong performance in energy names led commodities to their highest level since 2014, as of earlier this fall. With a rally going on for more than two years, commodities quietly rose to strong levels of performance.
Crude slipped for the 10th day in a row on Friday as an unanticipated spike in supply depressed prices even further, putting the hurt on three of the largest oil ETFs--United States Oil (USO), Invesco DB Oil (DBO) and United States Brent Oil (BNO). The losses were part of a much bigger drop as the bear market in oil has resulted in its longest losing streak since the middle of 1984, based on Refinitiv data. Oil analysts point to a combination of higher-than-expected output from key producers and a gloomy outlook for oil demand.
A sharp rise in the yield of benchmark 10-year U.S. Treasury notes sparked a sell-off in stocks that circled global markets. Debt markets are under pressure with bond prices falling rapidly, prompting investors to head toward products like inverse bonds ETFs for a piece of the pie. Japanese companies have not been spared the rout and fell to a four-week low, while crude oil traded near 4-year highs due to a plunge in Iranian exports as a result of U.S. sanctions. Closing the list, Canadian assets were favored last week on news regarding the rescue of the trilateral North American Free Trade Agreement but did not enjoy the highly anticipated inflows for long. Check out our previous Trends edition at Trending: Communication Stocks in Spotlight Amid S&P Sector Reshuffle.
Labor Day, the first Monday of September that pays homage to the creation of the labor movement and tips a hat to all American workers, will see a flurry of activity from traveling, rising gas prices, ...
Previously in this series, we saw that crude tanker stocks gave mixed returns in week 30—the week ending July 27. However, VLCC (very large crude carrier) and Aframax rates rose. In this part, we’ll see how bunker fuel prices fared last week.
Following EQT’s (EQT) second-quarter earnings release on July 26, its stock fell ~2%. The decline was due EQT missing the revenue and earnings estimates in the second quarter. The stock fell 8.26% on July 27. A drop in crude oil prices (DBO) on July 27 intensified the decline. Crude oil prices fell 1.32% on July 27.
Continental Resources (CLR) stock has been on a consistent uptrend since the beginning of 2018. The stock has risen 12.6% year-to-date. Recently, the stock has been declining. The stock mirrored the recent decline in crude oil prices (DBO).
Noble Energy (NBL) stock has risen since the beginning of this year, mirroring crude oil prices (DBO). Year-over-year, NBL stock has risen ~22.7%, while crude oil prices have surged 46.5% in the same period. Natural gas prices (UNG) have declined 6.14% in the same period.
Previously in this series, we saw that crude tanker stocks fell in week 29 (week ending July 20). However, VLCC (very large crude carrier) and Suezmax rates rose. In this part, we’ll see how bunker fuel prices fared last week.
On July 20, short interest as a percentage of float in Oasis Petroleum (OAS) stock (its short interest ratio) was ~13.01%. In July 2017, Oasis Petroleum’s short interest ratio was 17.41%.
Talk of recession has been linked to inverting Treasury yield curves as of late and now, it appears higher oil prices are making its way back into the pre-recession lexicon in the markets. The concept is not new as higher oil prices have been a precursor in the last five recessionary periods in the U.S. “Quickly rising oil prices have been a contributing factor to every recession since World War II,” said Moody's chief economist Mark Zandi.
Previously in this series, we saw that crude tanker stocks fell in Week 28 (ended July 13), along with VLCC (very large crude carrier) and Suezmax rates. In this part, we’ll see how bunker fuel prices fared last week.
Anadarko Petroleum (APC) stock has been on a significant uptrend this year due to the rally in crude oil prices (DBO). Anadarko Petroleum was also supported by strong first-quarter earnings. In the fourth quarter of 2017, Anadarko Petroleum’s EPS was positive for the first time since the first quarter of 2016.
Anadarko Petroleum (APC) stock has risen significantly this year. The stock has risen 37.8% year-to-date and 73.14% on a YoY (year-over-year) basis. In comparison, the broader industry represented by the Energy Select Sector SPDR ETF (XLE) has increased ~20.48%, while the broader market S&P 500 SPDR ETF (SPY) has risen 15.07% during the same period.
The hottest commodity oil has been on a solid run this year thanks to a tightening oil market and rising global demand. Rounds of news about new supply disruption are adding strength to the oil price, making the case for oil ETFs appealing.Source: ShutterstockSupply Declining