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Energy ETF closes February with worst monthly drop since December 2015

Published 02/28/2018, 06:30 PM
© Reuters.  Energy ETF closes February with worst monthly drop since December 2015
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  • The largest energy ETF fell 2.3% in today's action to cap off a 10.8% plunge for February, its worst monthly showing since December 2015.
  • The Energy Select SPDR ETF (NYSEARCA:XLE) turned negative after crude inventories rose by a larger than expected 3M barrels in the latest week, which sent WTI April crude oil futures 2.2% lower at $61.64/bbl.
  • “We had another pretty sizable build, and with that it kind of seemed like this recent bull market had the carpet pulled out from underneath it,” said Phillip Streible, senior market strategist at RJO Futures in Chicago.
  • Government data also showed a surprise build in U.S. gasoline stocks, which rose by 2.5M barrels vs. expectations for a ~200K-barrel drawdown.
  • Prices for the April WTI contract settled 4.8% lower in February, the first monthly loss since August, while Brent crude fell 4.7% for the month in its first monthly loss since June.
  • Separately, U.S. crude production for November was revised upward to 10.057M bbl/day, an all-time high.
  • ETFs: USO, XLE, OIL, UWT, UCO, VDE, XOP, DWT, ERX, OIH, SCO, BNO, DBO, ERY, DIG, UGA, BGR, GUSH, DTO, FENY, USL, IYE, DUG, DRIP, IEO, FIF, DNO, NDP, PXE, OLO, RYE, PXJ, SZO, CRAK, FXN, OLEM, WTIU, DDG, OILK, NANR, OILX, WTID, USOI, USOU, USOD, FTXN, JHME, UBRT, ERYY, DBRT, ERGF, OILD, OILU, USAI
  • Now read: Crude Oil Reversal


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