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Energy names surge as oil prices hit four-month highs – Seeking Alpha


Energy sprints to the top of today’s S&P sector standings, with oil prices aided by an agreement among European Union leaders on a 750B fund to prop up their coronavirus-hit economies, lifting prospects for fuel demand.
Continued gains in crude oil futures are accompanied by gains in gasoline and natural gas futures; WTI crude (CL1:COM)+3.1% to $42.09/bbl, its highest since March 6; RBOB gasoline (XB1:COM)+3.8% to $1.276/gal; Nymex natural gas (NG1:COM)+1.5% to $1.666/MMBtu.
The European stimulus “really seems to have set the stage for the energy rally,” says Price Futures Group’s Phil Flynn. “The expectation is if they can get this through all the individual governments and the approval process there is going to be a surge of oil demand.”
The Energy Select Sector SPDR fund (XLE+6%) is on track for its best day since June 5, while the SPDR S&P Oil & Gas Exploration & Production fund (XOP+6.9%) is poised for its best daily showing since June 8.
If XLE holds onto its current gains at $38.40 it would cross its 10-day and 100-day SMAs, just slightly off the 50-day SMA.
Today’s top five gainers in the S&P 500 are all in the oil and gas group: OXY+12.3%, DVN+11.1%, APA+9.9%, XEC+9.6%, FANG+8.6%.
Big Oil names enjoy outsized gains: CVX+6.6%, XOM+5.5%, BP+5.5%, RDS.A+4%.
Also: NBR+18.9%, SM+17.7%, ENLC+9.7%, SU+8.5%, PAA+7.9%, OKE+6.7%.
ETFs: USO, XLE, UNG, UGAZ, UCO, DGAZ, VDE, OIH, BGR, ERX, BNO

Source : https://seekingalpha.com/news/3593213-energy-names-surge-oil-prices-hit-four-month-highs

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