|Bid||73.9900 x 1400|
|Ask||74.0000 x 3200|
|Day's Range||73.5700 - 74.0600|
|52 Week Range||62.1300 - 79.4200|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.14%|
Turkey's troubles continue to plague markets. Yahoo Finance's Seana Smith, Dion Rabouin and The King's College Brian Brenberg discuss the latest with Bob Iaccino, Chief Market Strategist, Path Trading Partners.
On August 20, US crude oil October futures rose 0.3% and settled at $65.42 per barrel. Short covering might have supported the oil prices. On the same day, the Energy Select Sector SPDR ETF (XLE) rose 0.7%. The small rise in energy stocks might have contributed to the 0.2% and 0.3% rise in the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA), respectively, on August 20. Read Oil Could Impact US Equity Indexes’ Upside to learn more.
Oil's been getting crushed this month and a top technician warns the decline is signaling even more trouble for energy stocks. Worth illustrates that in the past two years the ETF has been unable to break above a key $80 level, showings signs of a bearish triple-top formation.
The top midstream stocks were in the red in the week ending August 17. Weakness in crude oil prices over the last few weeks likely contributed to the fall in energy stocks last week. Read Is US Crude Oil Nearing a Bear Market? to learn more. While the Energy Select Sector SPDR ETF (XLE) fell 3.6% last week, the Alerian MLP ETF (AMLP) fell 0.3%.
French oil giant Total has officially left Iran and abandoned its deal to develop a giant natural gas field in the country, Iran's oil minister reportedly told state television Monday, leaving the isolated republic to look for a replacement. "Total Iran has officially left the contract to develop the South Pars Gas project's phase 11... the process to replace with another company is underway," Bijan Namdar Zanganeh was quoted as saying, Reuters reported.
On August 16, US crude oil September futures rose 0.7% and settled at $65.46 per barrel—$0.45 above the lowest closing level in more than two months. On the same day, the Energy Select Sector SPDR ETF (XLE) rose 0.7%. The small rise in oil prices might also be behind a rise of 0.8% and 1.6% in the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA), respectively, in the last trading session. In Part 3 of this series, we’ll analyze US crude oil’s relationship with these equity indexes.
Shares of Zion Oil & Gas Inc. (zn) took a 41% dive toward a 14-month low, to pace all premarket decliners, after the oil and gas exploration company said it found oil with its Megiddo-Jezreel #1 well in Israel, but said additional testing will be required to know whether there is producible oil in commercial quantities. The company said testing of the well has taken longer than expected, and results so far "are inconclusive" as to whether the well will establish natural flow and what the volumetric contribution of oil and water will be.
To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a step back and looks at how various asset classes across the globe are performing. The weekly performance is from last Thursday’s open to this week’s Wednesday close.
So far, Enterprise Products Partners (EPD) has risen ~9% in 2018. The company has outperformed its peers in the midstream sector. Other top midstream players by market capitalization, Kinder Morgan (KMI) and Williams Companies (WMB) have fallen ~5% and ~1%, respectively, during the same period. MPLX (MPLX) has risen ~4% YTD (year-to-date). The Alerian MLP ETF (AMLP) is relatively flat, while the Energy Select Sector SPDR ETF (XLE) has risen ~3%.
In the week ending August 3, the negative inventories spread, which is the difference between natural gas inventories and their five-year average, was at -19.5%. The inventories spread contracted by ten basis points compared to the previous week. On August 9, the EIA (U.S. Energy Information Administration) reported the natural gas inventory data for the week ending August 3.
The natural gas rig count was at 186 last week—three more than the previous week. However, the natural gas rig count has fallen ~88.4% from its record level of 1,606 in 2008. US natural gas marketed production rose ~51.9% between January 2008 and May 2018 despite the natural gas rig count falling. As a result of the increased supply, natural gas active futures have fallen 62.3% since January 2008.
Usually, equity and commodity prices share a positive correlation. However, gold (GLD) is an obvious exception. The correlation between equities and commodities isn’t hard to explain. Commodities, like equities, tend to do well when demand is strong during periods of high economic growth. Commodities are weak in risk-off environments. Equity markets also fall during such periods.
On August 13, US crude oil September futures fell 0.6% and settled at $67.2 per barrel. On the same day, the Energy Select Sector SPDR ETF (XLE) fell 1.3%. The fall in energy stocks might have contributed to the 0.4% and 0.5% fall in the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA), respectively, on August 13. Read Did Oil’s Fall Impact the S&P 500 Index? to learn more.
On August 13–17, a variety of events could impact oil and natural gas prices. OPEC’s Monthly Oil Market report, which is scheduled to be released at the beginning of the week, is expected to be an important driver for oil prices. The EIA’s (U.S. Energy Information Administration) Drilling Productivity report is scheduled to be released on August 13. The EIA’s report will be another important factor for oil and natural gas prices.
Last time LNG stock was trading at $70 a share was in June 2014, when oil was trading above $100 a barrel. The risk of PetroChina cancelling its contract with Cheniere may be priced-in on the stock. Cheniere just signed a 25-year deal with Taiwan indicating there's a market beyond China for US LNG.
US E&P (exploration and production) stocks, particularly oil-weighted stocks, were sluggish last week (ended August 10) due to crude oil prices falling sharply mid-week. Although crude oil recovered slightly on Friday, it fell 1.3% last week to close at $67.60 per barrel. Trade tensions, expectations of lower demand, and strength in the US dollar weighed on crude oil prices, while sanctions on Iranian oil supported them.
Between August 2 and August 9, the major energy ETFs had the following correlation readings with US crude oil September futures: the SPDR S&P Oil & Gas Exploration & Production ETF (XOP): 82.9% the Energy Select Sector SPDR ETF (XLE): 59.1% the VanEck Vectors Oil Services ETF (OIH): 7.2% the Alerian MLP ETF (AMLP): -38.5%
To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a step back and looks at how various asset classes across the globe are performing. The weekly performance is from last Friday’s open to this week’s Thursday close.
Enbridge (ENB) and TransCanada (TRP) have lagged behind the broader US energy sector in 2018. Enbridge and TransCanada have fallen roughly 10% in 2018, while the Energy Select Sector SPDR ETF (XLE) has risen ~5% YTD (year-to-date). So far, crude oil prices have risen ~14% in 2018. Enbridge Energy Partners (EEP) and TC PipeLines (TCP) have fallen ~20% and ~40%, respectively, YTD.
Cheniere Energy (LNG) reported its second-quarter earnings before the market opened today. The company missed Wall Street estimates in the second quarter of 2018 after five consecutive quarters of beating expectations. Cheniere Energy posted 24.3% YoY revenue growth during Q2, while analysts were expecting a 34.9% YoY revenue increase. The company also missed on the EBITDA and EPS (earnings per share) front. The consensus EPS estimate was $0.25 per share for the quarter, while the company reported an EPS loss of $0.07 per share.
In the week ending July 27, natural gas inventories rose by 35 Bcf (billion cubic feet) to 2,308 Bcf, according to the EIA’s (U.S. Energy Information Administration) data released on August 2. The market expected an addition of 51 Bcf for the same week, according to Reuters’ estimates. On August 2, natural gas September futures rose 2.1%.
The stock market closed flat Wednesday, but the Nasdaq composite eked out a gain to extend its win streak to seven sessions.
The bad news bears are here for crude oil, gas, and related products. Oil and energy investors ran for cover as the tit-for-tat tariff talk escalated between the U.S. and China. United States Oil (USO), ...