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Oil's Best Streak for First Time Since July: ETF & Stock Winners
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The WTI crude market saw enough pain in April due to storage crisis. Due to lockdown-led low demand, ample supplies and drying storage capacity, May WTI crude contract fell to the negative territory on Apr 20, for the first time in history, and the June contract also suffered (read: Oil in Great Contango: Here's How to Play With Crude ETFs).
However, the demand scenario is more bullish for later months as reopening of economies will definitely boost the requirement of oil and gas. As a result, WTI June futures gained about 25.4% in the past five days at the time of writing. In fact, oil recorded the fifth straight day of gains for first time since July, per CNBC.
“The demand bottom is behind us, and this is manifesting in oil prices which are on the rise,” said Per Magnus Nysveen, Rystad Energy’s head of analysis, on CNBC. Demand for oil in April was forecast to decline by a record 29 million b/d, per the International Energy Agency.
However, demand is slowing strengthening. The International Energy Agency estimates consumption to be down 25.8 million b/d in May and 14.6 million in June. In December, it would be 2.7 million a day below 2019 levels, as quoted on worldoil.com.
Higher energy prices are instilling optimism among producers that have been battered in the past month. Exxon Mobil (XOM - Free Report) too expressed hopes of a demand recovery in the United States, Europe and Asia. A pair of prominent shale producers commented that oil around $30 a barrel would enable producers to recall curtailed crude output and fracking activities in new wells.
Notably, energy giants like Exxon, Chevron (CVX - Free Report) and ConocoPhillips (COP - Free Report) are among those that have cut output amid lower prices. Against this backdrop, below we highlight the wining energy ETF and stocks on the comeback of oil.
ETF Winners
First Trust Natural Gas ETF (FCG - Free Report) — Up 7.27% in the past five days
The underlying ISE-Revere Natural Gas Index is an equal-weighted index comprising exchange-listed companies that derive a substantial portion of their revenues from the exploration and production of natural gas (read: Oil Crash & Weather Concerns Boost Natural Gas ETFs).
Invesco S&P SmallCap Energy ETF (PSCE - Free Report) — Up 6.85%
The underlying S&P SmallCap 600 Capped Energy Index is designed to measure the overall performance of common stocks of U.S. energy companies.
Invesco Dynamic Energy Exploration & Production ETF (PXE - Free Report) — Up 6.83%
The underlying Dynamic Energy Exploration & Production Intellidex Index is composed of stocks of 30 U.S. companies involved in the exploration and production of natural resources used to produce energy.
SPDR S&P Oil & Gas Exploration & Production ETF (XOP - Free Report) — Up 6.75%
The underlying S&P Oil & Gas Exploration & Production Select Industry Index represents the oil and gas exploration and production sub-industry portion of the S&P Total Markets Index.
Stock Winners
Antero Resources Corporation (AR - Free Report) — Up 48.87% in the past five days
It is an independent explorer, primarily engaged in the acquisition and development of natural gas, natural gas liquids and oil resources in the Appalachian Basin. It has a Zacks Rank #3 (Hold).
Image: Bigstock
Oil's Best Streak for First Time Since July: ETF & Stock Winners
The WTI crude market saw enough pain in April due to storage crisis. Due to lockdown-led low demand, ample supplies and drying storage capacity, May WTI crude contract fell to the negative territory on Apr 20, for the first time in history, and the June contract also suffered (read: Oil in Great Contango: Here's How to Play With Crude ETFs).
However, the demand scenario is more bullish for later months as reopening of economies will definitely boost the requirement of oil and gas. As a result, WTI June futures gained about 25.4% in the past five days at the time of writing. In fact, oil recorded the fifth straight day of gains for first time since July, per CNBC.
“The demand bottom is behind us, and this is manifesting in oil prices which are on the rise,” said Per Magnus Nysveen, Rystad Energy’s head of analysis, on CNBC. Demand for oil in April was forecast to decline by a record 29 million b/d, per the International Energy Agency.
However, demand is slowing strengthening. The International Energy Agency estimates consumption to be down 25.8 million b/d in May and 14.6 million in June. In December, it would be 2.7 million a day below 2019 levels, as quoted on worldoil.com.
Higher energy prices are instilling optimism among producers that have been battered in the past month. Exxon Mobil (XOM - Free Report) too expressed hopes of a demand recovery in the United States, Europe and Asia. A pair of prominent shale producers commented that oil around $30 a barrel would enable producers to recall curtailed crude output and fracking activities in new wells.
Notably, energy giants like Exxon, Chevron (CVX - Free Report) and ConocoPhillips (COP - Free Report) are among those that have cut output amid lower prices. Against this backdrop, below we highlight the wining energy ETF and stocks on the comeback of oil.
ETF Winners
First Trust Natural Gas ETF (FCG - Free Report) — Up 7.27% in the past five days
The underlying ISE-Revere Natural Gas Index is an equal-weighted index comprising exchange-listed companies that derive a substantial portion of their revenues from the exploration and production of natural gas (read: Oil Crash & Weather Concerns Boost Natural Gas ETFs).
Invesco S&P SmallCap Energy ETF (PSCE - Free Report) — Up 6.85%
The underlying S&P SmallCap 600 Capped Energy Index is designed to measure the overall performance of common stocks of U.S. energy companies.
Invesco Dynamic Energy Exploration & Production ETF (PXE - Free Report) — Up 6.83%
The underlying Dynamic Energy Exploration & Production Intellidex Index is composed of stocks of 30 U.S. companies involved in the exploration and production of natural resources used to produce energy.
SPDR S&P Oil & Gas Exploration & Production ETF (XOP - Free Report) — Up 6.75%
The underlying S&P Oil & Gas Exploration & Production Select Industry Index represents the oil and gas exploration and production sub-industry portion of the S&P Total Markets Index.
Stock Winners
Antero Resources Corporation (AR - Free Report) — Up 48.87% in the past five days
It is an independent explorer, primarily engaged in the acquisition and development of natural gas, natural gas liquids and oil resources in the Appalachian Basin. It has a Zacks Rank #3 (Hold).
Matador Resources Company (MTDR - Free Report) — Up 38.62%
It is the leading oil and gas explorer in the shale and unconventional resources in the United States and has a Zacks Rank #3.
PBF Energy Inc. (PBF - Free Report) — Up 13.1%
The Zacks Rank #3 refiner of crude provides end products that comprise heating oil, transportation fuels, lubricants and many related products.
Marathon Oil Corporation (MRO - Free Report) — Up 10.77%
The Zacks Rank #3 company is a leading oil and natural gas exploration and production company with operations in the United States and Africa.
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