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Energy was easily the worst performing industry sector of the week, falling along with crude oil prices, weighed down by rising US inventories and fading optimism about the global demand outlook.
Crude oil reserves are normally declining at this time of the year, but the The US oil market was amply supplied in Januarywith inventory builds since the start of the year totaling 32 million barrels and gasoline stocks rising for four consecutive weeks by a combined 12 million barrels.
The latest US data showed a 4.1 million-barrel build in crude inventories for the week ending January 27, as well as weekly increases in gasoline and distillate supplies.
For the week, prior-month Nymex crude (CL1:COM) for March delivery settled -7.9% at $73.39/bbl, and April Brent crude (CO1:COM) closed -7.5% at $79.94/bbl, the second straight weekly loss for both benchmarks after back-to-back weekly gains.
ETFs: (NYSEARCA:USE), (BNO), (UCO), (SCO), (BOD), (DRIP), (GUSH), (USOI), (NRGU)
Starting February 5, the European Union and the United Kingdom will ban imports of Russian fuels such as diesel and gasoline, following a ban on Russian crude oil imports in December.
He European Union agreed on Friday limit the selling price of premium Russian petroleum products, such as diesel, to $100/bbl; and limit lower-value products, such as fuel oil, to $45/bbl.
“As with the sanctions on Russian crude, the EU ban on Russian oil products is unlikely to take barrels off the marketsimply causing changes in global flows, “so it will have a moderate impact,” said Matt Smith, principal oil analyst at Kpler. market clock.
The top oil and gas ETF: the Energy Select Sector SPDR Fund (NYSEARCA:XLE) – closed the week -5.9%the worst among the 11 S&P sector groups.
Top 3 gainers in energy and natural resources over the last 5 days: (NEXT) +20.7%(LPG) +19.4%(SLI) +16.1%.
Top 10 decliners in energy and natural resources over the last 5 days: (VOC) -22.4%(USA) -15.5%(MMLP) -14.3%(BPT) -12.9%(CSR) -12.7%(COP) -12.5%(FOREST) -12.3%(ENOUGH) -12.2%(HE IS) -11.9%(GPRK) -11.9%.
Source: Barchart.com
