Latest news with #OIH
CNBC
16-06-2025
- Business
- CNBC
What the charts say will happen next with oil and energy stocks, according to Katie Stockton
Geopolitical tensions have resulted in a spike in crude oil prices that has market participants on edge. The rally has yet to reverse cyclical downtrends in crude oil prices and energy sector benchmarks, but reversals are made more likely in the coming weeks by a meaningful shift in momentum. The generic WTI crude oil futures chart shows a confirmed a weekly MACD 'buy' signal, indicating that intermediate-term momentum has seen a significant upward shift. At the same time, overbought conditions are not yet in place per the weekly stochastic oscillator, suggesting that the rally in WTI crude oil prices may have staying power for several more weeks. For now, the upmove behind WTI crude oil is counter-trend in nature, meaning that the primary trend is lower. This is evidenced by the falling weekly cloud model, denoted by the shaded area on the chart, which shows key resistance near $77/bbl. If this level is cleared decisively, it would suggest the cyclical downtrend in WTI crude oil has been reversed. Secondary resistance is at a Fibonacci retracement level near $84/bbl. Support is initially near $65/bbl. and at the rising 50-day (~10 week) moving average (MA). Oil services stocks have naturally been out of favor the past couple years while oil prices have trended lower, but they should outperform the broader equity market in the short term. Similar to the chart of WTI crude oil, the VanEck Oil Services ETF (OIH) has improved intermediate-term momentum and no signs of upside exhaustion, increasing the likelihood of a breakout above a Fibonacci retracement level near $257 for a secondary objective of $298. Clearing the 38.2% Fibonacci retracement level would be the first step for OIH in reversing its long-term downtrend. There is a long-term oversold condition that could give way to a 'buy' signal at month-end, assuming OIH finishes the month around current levels or higher. If this occurs, we would feel more comfortable building long-term exposure to oil services stocks. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. 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Yahoo
16-06-2025
- Business
- Yahoo
Here's Why Energy ETFs Outperformed Last Week: Will the Rally Last?
The energy sector outperformed last week, buoyed by a rise in crude oil prices, triggered by an escalation in the Middle East tensions. Energy Select Sector SPDR Fund XLE has gained 5.8%, outperforming the broad market index fund SPY, which has gained 1.8%.Most energy ETFs rallied last week, with VanEck Vectors Oil Services ETF OIH, SPDR S&P Oil & Gas Equipment & Services ETF XES, Invesco Energy Exploration & Production ETF PXE, Invesco S&P SmallCap Energy ETF PSCE and SPDR S&P Oil & Gas Exploration & Production ETF XOP leading the way. These funds gained nearly 8% last week. Oil prices soared to the highest level since February after Israel launched a wave of airstrikes against Iran's nuclear and ballistic missile programs as well as its senior military leadership, escalating concerns about broader supply disruptions in the Middle East. In response, Iranian missiles reportedly struck a major oil refinery in Haifa, Israel, causing significant damage (read: Oil ETFs Jump on Escalation in Middle East Tensions).Oil price jumped 13% last week, with more than 7% gains coming in just Friday. Currently, U.S. crude oil is priced at $75.67 per barrel while Brent is hovering at $77.90 per barrel. Iran has hinted at potentially closing the Strait of Hormuz, a strategic chokepoint through which about 20% of the world's oil passes en route to international markets. Analysts at Goldman Sachs warned that such a move could push oil prices above $100 per barrel. Other analysts also warn that if the conflict drags on or draws in other regional powers, crude prices could breach the $100 mark. The oil rally could extend further if the European Union advances its plan for a fresh round of sanctions on Russian energy exports. This is especially true as the European Commission last week proposed a new sanctions package that involves lowering the oil price cap on Russian crude from $60 to $45 per barrel, banning use of the Nord Stream pipeline and blacklisting 77 additional 'shadow fleet' vessels transporting sanctioned oil. Meanwhile, the Energy Information Administration (EIA) slashed its U.S. crude oil production estimates by 50,000 barrels for 2026 to 13.37 million barrels per day. This would be the first decline on an annual basis in U.S. output since 2021. The EIA left projected output growth for 2025 unchanged at 210,000 barrels per the other hand, the oil cartel, OPEC+, agreed to increase oil output by 411,000 barrels a day in July. By the end of July, over 60% of the bloc's planned 2.2 million bpd increase will have been President Donald Trump expressed displeasure over rising oil prices, urging domestic producers to ramp up drilling and floated the idea of additional sanctions on Russia unless it moves to de-escalate its war on Ukraine (read: Country ETFs to Gain/Lose on Oil Price Rebound).Here, we have profiled the abovementioned ETFs:VanEck Vectors Oil Services ETF (OIH) VanEck Vectors Oil Services ETF tracks the MVIS U.S. Listed Oil Services 25 Index, which offers exposure to companies involved in oil services to the upstream oil sector, including oil equipment, oil services or oil drilling. It holds 26 stocks in its basket. With an AUM of $1 billion, VanEck Vectors Oil Services ETF charges 35 bps in annual fees and trades in an average daily volume of 541,000 shares. It has a Zacks ETF Rank #3 (Hold) with a High risk S&P Oil & Gas Equipment & Services ETF (XES) SPDR S&P Oil & Gas Equipment & Services ETF tracks the S&P Oil & Gas Equipment & Services Select Industry Index, which measures the performance of the companies engaged in the oil and gas equipment and services industry. It holds 33 stocks in its basket with AUM of $157.7 million. SPDR S&P Oil & Gas Equipment & Services ETF charges 32 bps in fees per year from investors and trades in an average daily volume of 50,000 shares. It has a Zacks ETF Rank # Energy Exploration & Production ETF (PXE)Invesco Energy Exploration & Production ETF follows the Dynamic Energy Exploration & Production Intellidex Index, which thoroughly evaluates companies involved in the exploration and production of natural resources used to produce energy based on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action and value. Holding 32 stocks in its basket, Invesco Energy Exploration & Production ETF has amassed $75.4 million in its asset base and charges 63 bps in annual fees. It trades in a volume of 26,000 shares and has a Zacks ETF Rank #2 (Buy) with a High risk outlook. Invesco S&P SmallCap Energy ETF (PSCE)Invesco S&P SmallCap Energy ETF offers exposure to companies that are principally engaged in producing, distributing or servicing energy-related products, including oil and gas exploration, and production, refining, oil services and pipelines. It tracks the S&P Small Cap 600 Capped Energy Index, holding 32 stocks in its basket with a modest concentration across firms. Invesco S&P SmallCap Energy ETF has accumulated $61.4 million in its asset base and charges 29 bps in annual fees. It trades in an average daily volume of 14,000 shares and has a Zacks ETF Rank #4 (Sell) with a High risk outlook. SPDR S&P Oil & Gas Exploration & Production ETF (XOP)SPDR S&P Oil & Gas Exploration & Production ETF provides exposure to 53 oil and gas exploration and production companies by tracking the S&P Oil & Gas Exploration & Production Select Industry Index. It has an AUM of $2.1 billion and trades in an average daily volume of 4 million shares. SPDR S&P Oil & Gas Exploration & Production ETF charges 35 bps in fees per year and has a Zacks ETF Rank #2 (Buy) with a High risk outlook. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR S&P 500 ETF (SPY): ETF Research Reports Energy Select Sector SPDR ETF (XLE): ETF Research Reports SPDR S&P Oil & Gas Exploration & Production ETF (XOP): ETF Research Reports SPDR S&P Oil & Gas Equipment & Services ETF (XES): ETF Research Reports VanEck Oil Services ETF (OIH): ETF Research Reports Invesco S&P SmallCap Energy ETF (PSCE): ETF Research Reports Invesco Energy Exploration & Production ETF (PXE): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
