Energy stocks outperformed as crude oil gave back gains in 2022
Yahoo Finance’s Jared Blikre breaks down key technical levels for energy stocks and crude oil heading into 2023.
Video Transcript
- Welcome back to Yahoo Finance Live. We're about eight minutes into today's trading session. Let's get on over to Jared Blikre at the YFi Interactive for a deeper dive into today's tape this morning.
JARED BLIKRE: Yes. Well, we got to talk about the energy market because, as you were just working your magic there over at the YFi Interactive, I'm going to go back to the year-to-date look at our sectors. Energy, the only thing in the green, and it is green by a mile, up 57%.
And XLE-- let me just show you a max chart on this. This is going to go back to-- it's going to go back to the late 90s. Arguably, this is a triple top from the global financial crisis to 2013 and then into this year until XLE crosses this hurdle here. And this is roughly 90 to about 110, 120. This is still potentially, incredibly strong resistance. So I just want to throw that out there now.
But let's go back to-- let's actually go to our futures chart here where we see crude oil. That's up about 4%. Brent's up 4.3%. So we'll take a look at WTI. Here is a year-to-date chart of crude. And what stands out to me is it's only up 4%. So basically, crude oil round-tripped its entire gains.
Now this big spike here in February, March, that was the Russia-Ukraine conflict as it was erupting. That was just kind of out of the blue. And, of course, more of that could emerge in the new year. Then we had this second spurt up to about 120. And it's been a slow, steady decline ever since. And OPEC Plus just, at their last meeting earlier in the month, they left everything the same. So they seem to be happy with the way things are-- maybe an equilibrium level in the oil market right now.
So this is our energy stock heat map. And we can see Exxon, the biggest of the majors. That's up 79%-- huge gains for any kind of company. But number one here is OXY. I believe that's number one. And here is the year-to-date chart on this. At 115%-- by the way, this is the energy stock that Warren Buffett likes the most. Berkshire Hathaway has a huge position there. It's been rumored they might buy the company.
To be able to consolidate these gains as we are having the worst year in years for stocks overall is incredibly powerful. But much like some of these other markets, at potential resistance as well. So long-term charts are saying we could be at resistance. But there's huge gains that we have made this year in some of these markets.
- Jared Blikre with the technical analysis. Appreciate it.
