Venezuela’s oil minister as quoted…
Oilfield services providers are seeing…
Energy ETFs are soaring on the coattails of OPEC’s Wednesday promise to cut oil output to 32.5 million barrels per day, and right now it looks like they’re set to climb further.
OPEC’s announcement resulted in an oil price spike bigger than anything we’ve seen in nine months, and energy stocks are up higher than any time since January.
WTI crude ETF United States Oil (USO) was up about 8.7 percent yesterday and climbed 4.8 percent today, while Brent crude ETF United States Brent Oil gained 9.1 percent yesterday, according to Zacks.
At the same time, Energy Select Sector SPDR ETC (XLE)—the largest equities-based energy ETF in the world—saw a 5.1-percent boost yesterday. Today, XLE was up 1.7 percent.
In the oil company patch, according to Barrons, ConocoPhillips (COP), Newfield Exploration (NFX) and Hess (HES) all marked off 30 November as their best day in eight years, thanks to the OPEC news, while Anadarko Petroleum (APC) was actually lower early on 1 December.
Though OPEC has pledged to slash output to 32.5 million barrels per day, until we actually see it happen, oil prices will be vulnerable to volatility and further comments coming from the cartel, as well as speculative comments from analysts.
Goldman Sachs and Soros Fund Management remain bullish.
There are also a number of regular, leveraged energy ETFs that have hit a 52-week high following the OPEC deal announcement, according to Zacks, with some gaining nearly 35 percent.
These are the top eight gainers from the Zacks list:
• Direxion Daily S&P Oil&Gas Exploration & Production Bull 3X ETF saw a 34.6% gain
• Direxion Daily Energy Bull 3X EFT jumped 15.3%
• PowerShares S&P SmallCap Energy ETF was up 12.73%
• PowerShares DWA Energy Momentum ETF was up 12.66%
• SPDR S&P Oil&Gas Equipment & Services ETF gained 12.59%
• SPDR S&P Oil&Gas Exploration & Production ETF gained 11.58%
• VanEck Vector Oil Services ETF climbed 10.62%
• ProShares Ultra Oil & Gas jumped 10.56%
By Julianne Geiger for Oilprice.com
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Julianne Geiger is a veteran editor, writer and researcher for US-based Divergente LLC consulting firm, and a member of the Creative Professionals Networking Group.