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Energy was easily the week’s worst-performing industry sector, falling along with crude oil prices weighed down by rising US inventories and waning optimism about global demand.
Crude oil inventories usually decline at this time year, but The American oil market was well supplied in Januarywith year-to-date inventories increasing by a total of 32 million barrels and gasoline inventories rising by a total of 12 million barrels for four consecutive weeks.
The latest U.S. data showed a 4.1 million barrel increase in crude oil inventories in the week ended Jan. 27, as well as weekly increases in gasoline and distillate inventories.
For the week, Nymex crude oil (CL1:COM) for March delivery for the first month was established -7.9% at $73.39/bbl, and April Brent crude (CO1:COM) closed -7.5% to $79.94/bbl, the second consecutive weekly loss for both benchmarks after consecutive weekly gains.
ETFs: (NYSEARCA: USE IT), (BNO), (UCO), (SCO), (DBO), (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, a move that follows a ban on Russian crude imports in December.
The European Union agreed on Friday to cap the selling price of top Russian oil products such as diesel at $100/bbl and cap lower-value products such as fuel oil at $45/bbl.
“Just like with the Russian crude oil sanctions, the EU ban on Russian oil products is unlikely to remove barrels from the market,” only causing changes in global flows, “so it will have a muted effect,” said Kpler lead oil analyst Matt Smith. MarketWatch.
Best Oil & Gas ETF – Select Energy Sector SPDR Fund (NYSEARCA:XLE) – closed for the week -5.9%the worst among 11 S&P sector groups.
3 biggest winners of energy and natural resources in the past 5 days: (NEXT) +20.7%(LPG) +19.4%(SLI) +16.1%.
10 biggest declines in energy and natural resources in the past 5 days: (VOC) -22.4%(NOW) -15.5%(MMLP) -14.3%(BPT) -12.9%(CSR) -12.7%(COP) -12.5%(SUM) -12.3%(ENOUGH) -12.2%(HE IS) -11.9%(GPRK) -11.9%.
Source: Barchart.com