• 4 minutes Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 9 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 17 minutes Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 3 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 18 hours Corruption On The Top: Netanyahu's Wife Charged With Misuse of Public Funds for Meals
  • 7 hours Saudi Arabia turns to solar
  • 4 hours Why is permian oil "locked in" when refineries abound?
  • 11 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 1 hour Could Venezuela become a net oil importer?
  • 7 hours Teapots Cut U.S. Oil Shipments
  • 6 hours Oil prices going down
  • 7 hours Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
  • 23 hours Sell out now or hold on?
  • 23 hours Could oil demand collapse rapidly? Yup, sure could.
  • 24 hours Gazprom Exports to EU Hit Record
  • 22 hours "The Gasoline Car Is a Car With a Future"
  • 8 hours Putin Says 'Fierce' U.S. Politics Hindering Summit With Trump
  • 17 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
Goldman: Expect Another Bull Run In Oil

Goldman: Expect Another Bull Run In Oil

While oil prices are tumbling,…

Core OPEC Ramps Up Production Ahead Of Meeting

Core OPEC Ramps Up Production Ahead Of Meeting

Saudi Arabia has been one…

Julianne Geiger

Julianne Geiger

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.

More Info

Energy ETFs Win Big On OPEC Promises

Shale oil

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.

Related: Is This The Mastermind Behind The OPEC Deal?

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

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News