Energy stocks/ETFs are bright spots as market sells off on inflation concern

May 12, 2021 11:52 AM ETS&P VIX Index (VIX), IEZ, OIH, XOP, XLE, XES, PXI, VDE, USOXLE, OIH, VDE, USO, IEZ, XES, XOP, PXI, VIXBy: Jason Capul, SA News Editor6 Comments
  • Approaching the halfway point of trading and market participants can see that the energy space is one of two sectors that is trading on the positive side as investors see a selloff of all the major indices among inflation concerns.
  • With the (VIX) rising for the third day in a row now surpassing the 24 handle, market participants have limited options for equity investments in the risk-off trading day. The energy space is one of the bright spots that is trading to the topside. The sector as a whole is +2.81% on the day.
  • Thanks to a drop in crude inventories, energy shares have seen a boost. The price of oil has risen +2.32% since the close on Friday, May 7th, now trading at $66.33/bbl and heading towards $70/bbl.
  • From a technical standpoint, oil is looking to retest its March 8th high, which is significant as prior to March 8th oil has not seen that level since October of 2018.
  • With the move up in oil today, a handful of exchange traded funds have benefited from the activity. See the daily price action of the following oil and gas ETFs: (NYSEARCA:IEZ) +3.79%, (NYSEARCA:OIH) +3.72%, (NYSEARCA:XOP) +3.45%, (NYSEARCA:XLE) +3.41%, (NYSEARCA:XES) +3.38%, (NASDAQ:PXI) +3.26%,(NYSEARCA:VDE) +3.25%, and (NYSEARCA:USO) +1.40%.
  • In its latest monthly report, the International Energy Agency said the record oil glut built up last year due to the pandemic has nearly returned to normal levels.

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