Energy (NYSEARCA:XLE) is Monday’s top S&P sector performer by a wide margin, +2.1%, supported by strong gains in crude oil futures, building on last week’s gains as investors evaluate the prospect of a cut in production by OPEC+.
Of the day’s top 15 gainers on the S&P 500, 14 are in the oil and gas group: (FANG) +4.4%, (APA) +3.8%, (OXY) +3.6%, (MRO) +3.5%, (XOM) +3%, (CTRA) +2.6%, (EOG) +2.5%, (PXD) +2.5%, (DVN) +2.4%, (HES) +2.4%, (COP) +2.3%, (HAL) +2.1%, (SLB) +2.1%, (VLO) +2.1%.
The energy sector extends its August gain to ~7% compared to a 2.7% month-to-date loss on the S&P 500.
Unrest in Libya’s capital at the weekend that resulted in 32 deaths also prompted concern that the country could slide into a full-blown conflict and disrupt in oil supply.
LPL Financial chief equity strategist Jeff Buchbinder said he sees five reasons for oil and gas stocks to continue their run higher.