Energy is the top performing sector this year by a wide margin. The SPDR Energy ETF (XLE) has advanced 13 percent so far in 2021, compared with a 0.3 percent gain for the S&P 500.
Hopes about the economy reopening and a rebound in China are obviously parts of the story. But the supply/demand fundamentals may be improving as well.
Last week, the Energy Department reported a 3.2 million barrel drop in crude-oil inventories. That was bigger than then 2.3 million drop anticipated by forecasters. It was the third straight week that the number showed less of a glut than feared — the longest week of bullish surprises since September 2019.
Market Insights, its pages and content are hosted by TradeStation Group, Inc.
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under theTradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, including the document titled Characteristics and Risks of Standardized Options if you are interested in trading equity or index options. Online trading is not suitable for all investors. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.