- Analysts are crediting profit-taking for today's pullback in crude oil prices from multiyear highs, with the energy sector (XLE -1.7%) dragging along at the bottom of the sector standings.
- December WTI crude (CL1:COM) -2.6% to $81.23/bbl after the November contract expired yesterday at a seven-year high, and December Brent crude (CO1:COM) -2.4% to $83.73/bbl after rising to as high as $86.10, the best level since October 2018.
- ETFs: USO, UCO, BNO, SCO, USOI, USL, DBO
- Among today's biggest decliners: FTI -6.3%, KMI -6%, RIG -4.5%, NOV -4.4%, BKR -3.6%, HAL -3.6%.
- "While some projections are as bullish as $100, current price levels already start feeling high for traders, who always have an itch to reap profits from the rising prices," Rystad Energy analyst Louise Dickson tells MarketWatch.
- But Dickson thinks the trajectory for oil still looks bullish for the rest of the year due to rising demand and OPEC's tight production policy.
- This week's supply report from the U.S. Energy Information Administration showed tighter crude and fuel inventories, with crude storage at the Cushing hub falling to a three-year low.
- Crude stocks "remain far below normal for this time of year" and will "need months of a stronger supply/demand balance before moving in line with the five-year average," Schneider Electric's Robbie Fraser says.
- Kinder Morgan trades sharply lower after Q3 earnings missed expectations.