Oil's Best Streak for First Time Since July: ETF & Stock Winners
Zacks Investment Research | May 06, 2020 08:00AM ET
The WTI crude market saw enough pain in April due to storage crisis. Due to lockdown-led low demand, ample supplies and drying storage capacity, May WTI crude contract fell to the negative territory on Apr 20, for the first time in history, and the June contract also suffered (read: per CNBC .
“The demand bottom is behind us, and this is manifesting in oil prices which are on the rise,” said Per Magnus Nysveen, Rystad Energy’s head of analysis, on CNBC. Demand for oil in April was forecast to decline by a record 29 million b/d , per the International Energy Agency.
However, demand is slowing strengthening. The International Energy Agency estimates consumption to be down 25.8 million b/d in May and 14.6 million in June. In December, it would be 2.7 million a day below 2019 levels, as quoted on worldoil.com.
Higher energy prices are instilling optimism among producers that have been battered in the past month. Exxon Mobil A pair of prominent shale producers commented that oil around $30 a barrel would enable producers to recall curtailed crude output and fracking activities in new wells.
Notably, energy giants like Exxon, Chevron COP are among those that have cut output amid lower prices. Against this backdrop, below we highlight the wining energy ETF and stocks on the comeback of oil.
ETF Winners
First Trust Natural Gas ETF FCG — Up 7.27% in the past five days
The underlying ISE-Revere Natural Gas Index is an equal-weighted index comprising exchange-listed companies that derive a substantial portion of their revenues from the exploration and production of natural gas (read: Oil Crash & Weather Concerns Boost Natural Gas ETFs ).
Invesco (NYSE:IVZ) S&P (NYSE:SPY) SmallCap Energy ETF (NYSE:XLE) PSCE — Up 6.85%
The underlying S&P SmallCap 600 Capped Energy Index is designed to measure the overall performance of common stocks of U.S. energy companies.
Invesco Dynamic Energy Exploration & Production ETF PXE — Up 6.83%
The underlying Dynamic Energy Exploration & Production Intellidex Index is composed of stocks of 30 U.S. companies involved in the exploration and production of natural resources used to produce energy.
SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP) — Up 6.75%
The underlying S&P Oil & Gas Exploration & Production Select Industry Index represents the oil and gas exploration and production sub-industry portion of the S&P Total Markets Index.
Stock Winners
Antero Resources (NYSE:AR) Corporation AR — Up 48.87% in the past five days
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It is an independent explorer, primarily engaged in the acquisition and development of natural gas, natural gas liquids and oil resources in the Appalachian Basin. It has a Zacks Rank #3 (Hold).
Matador Resources (NYSE:MTDR) Company MTDR — Up 38.62%
It is the leading oil and gas explorer in the shale and unconventional resources in the United States and has a Zacks Rank #3.
PBF Energy (NYSE:PBF) Inc. PBF — Up 13.1%
The Zacks Rank #3 refiner of crude provides end products that comprise heating oil, transportation fuels, lubricants and many related products.
Marathon Oil Corporation (NYSE:MRO) MRO — Up 10.77%
The Zacks Rank #3 company is a leading oil and natural gas exploration and production company with operations in the United States and Africa.
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Exxon Mobil Corporation
(NYSE:XOM): Free Stock Analysis Report
Marathon Oil Corporation
(MRO): Free Stock Analysis Report
Chevron Corporation
(NYSE:CVX): Free Stock Analysis Report
ConocoPhillips
(COP): Free Stock Analysis Report
PBF Energy Inc.
(PBF): Free Stock Analysis Report
Matador Resources Company
(MTDR): Free Stock Analysis Report
Antero Resources Corporation
(AR): Free Stock Analysis Report
First Trust Natural Gas ETF
(FCG): ETF Research Reports
Invesco Dynamic Energy Exploration & Production ETF
(PXE): ETF Research Reports
Invesco S&P SmallCap Energy ETF
(PSCE): ETF Research Reports
SPDR S&P Oil & Gas Exploration & Production ETF
(XOP): ETF Research Reports
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