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US oil futures are down 10% this week, as a combination of rising COVID cases in China and tighter tightening by central banks in the US and elsewhere is changing market sentiment, wiping out all gains. in the last month when OPEC + announced its surprise 2M bbl/day production cut.
The month ahead Nymex crude oil (CL1: COM) for December delivery closed the week -9.9% to $80.08/bbl, the lowest since September 30 after the biggest one-week decline since April, when January Brent crude (CO1:COM) ended. -8.7% at $87.62/bbl.
The front-month spread on WTI crude went into contango on Friday for the first time since 2021, which could indicate that demand is falling faster than OPEC+ has cut production.
Some traders say that the contango reversal was caused by the additional supply due to the decrease in Shell’s (NYSE: SHEL) Zydeco pipelines, which connect several pipelines in Houston and Port Neches in Texas; The disruption is causing shale barrels to move to Cushing, Okla., for storage, affecting future WTI contracts.
Shell ( SHEL ) said Zydeco will remain underweight until the end of December.
Power (NYSEARCA:XLE) was one of the best performing episodes of the week, -1.6%and get four straight weeks of success.
Top 5 gainers in energy and natural resources in the past 5 days: (PEGY) + 28.4%(HTOO) + 18.8%(HNRG) + 15%(GNE) + 12.7%(RGCO) + 11.5%.
Top 10 energy and natural lows in the past 5 days: (TUSK) -23.1%(AMTX) -18.9%(SQM) -18.7%(AQN) -17.5%(AMPS) -17.3%(PPTA) -16.4%(OTHERS) -15.9%(Customs) -15.2%(SGML) -15.2%(ALB) -14.8%.
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