Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  The Price Of Crude Oil Has Surged During The COVID-19 Pandemic
Posted Under: Sectors
Supporting Image for Blog Post

 
View from the Observation Deck  
  1. The price of West Texas Intermediate (WTI) crude oil closed at $83.76 per barrel on 10/22/21, up 87.13% from its closing price of $44.76 on 2/28/21, according to Bloomberg.  
  2. For comparative purposes, the S&P 500 Energy Index posted a total return of 38.83% over that same period, according to Bloomberg. The top-performing Energy subsector was the S&P 500 Oil & Gas Exploration & Production Index, with a total return of 64.86%. 
  3. As indicated in the chart above, total U.S. crude oil production declined over the period from 13.1 million barrels per day on 2/28/20 to 11.3 million barrels per day on 10/22/21, according to the U.S. Department of Energy. 
  4. Data from Bloomberg (not in chart) shows that crude oil production from OPEC (Organization of the Petroleum Exporting Countries) declined from 27.91 million barrels per day on 2/29/20 to 27.49 million barrels per day on 9/30/21. This indicates that production has decreased considerably more in the U.S. than abroad.  
  5. The number of active crude oil rigs (not in chart) in the U.S. declined from 678 on 2/28/21 to 443 on 10/22/21, according to data from Baker Hughes. 
  6. The relative value of the U.S. dollar (exchange rate) likely provided a bit of a boost to the price of crude oil. From 2/28/20 through 10/22/21, the U.S. dollar declined by 4.58% against a basket of major foreign currencies, as measured by the U.S. Dollar Index (DXY), according to Bloomberg. 
  7. As of 10/25/21, Energy accounted for only 2.95% of the S&P 500 Index, down from a 13.14% weighting at the end of 2008, according to Bespoke Investment Group and Bloomberg.
  8. Investors funneled an estimated net $13.94 billion into Energy Equity mutual funds and exchange-traded funds (ETFs) for the 12-month period ended 9/30/21, according to Morningstar. 
This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions and other expenses incurred when investing. Investors cannot invest directly in an index. The S&P 500 Energy Index is a capitalization-weighted index comprised of 500 stocks representing the energy sector. 

Download a PDF of this post, please click here.
Posted on Tuesday, October 26, 2021 @ 10:48 AM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
Passive vs. Active Fund Flows
A Global Snapshot Of Government Bond Yields
The Price Of Natural Gas Has Surged
Technology Stocks Have Delivered Strong Returns Since The End Of The Financial Crisis-Induced Bear Market
S&P 500 Index Dividend Payout Profile
The Only Constant Is Change
Stock Buybacks by Sector
S&P 500 Index’s Dividend Payout Rebounding From COVID-19 Dip
Low U.S. Consumer Credit Default Rate A Nice Tailwind For Discretionary Stocks
A Snapshot Of Moving Averages
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.