Shares of energy companies experienced a slight dip in the market, although not as significant as the overall decline. This sector is still considered a beneficiary amidst another wave of inflation.
Oil Futures Thrive on Saudi Arabian Production Cuts
Investors eagerly embraced the news of Saudi Arabia’s plan to extend production cuts, resulting in oil futures surging for the ninth consecutive session. The closing price of $87.54 per barrel reached a remarkable ten-month high. The impact of these unexpected Saudi caps is undeniable, as diesel prices in the United States and Europe have climbed by more than 40% since May.
SPDR Select Sector Energy ETF Remains Strong
The SPDR Select Sector energy exchange-traded fund is steadily approaching all-time highs, displaying an impressive rise of approximately 8% for the year 2023 so far.
Natural Gas Faces Setback with Favorable Weather Forecasts
In contrast, natural gas futures experienced a decline, reaching a two-week low. Temperate weather forecasts throughout the United States played a role in this setback.
Controversial Oil and Gas Leases in Alaskan Wildlife Refuge to be Cancelled
Reports suggest that the Biden Administration intends to cancel the oil and natural gas leases held in an Alaskan federal wildlife refuge. These leases were purchased by a state development agency in 2021, sparking controversy and criticism.
