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Crude oil closed the week with a fourth straight winning session Friday on general market optimism about a Chinese economic recovery, after upbeat data on economic activity released earlier in the week helped set a positive tone.
Activity in China’s services sector in February expanded at the fastest pace in six months, and manufacturing in China also improved.
Front-month Nymex crude (CL1:COM) for April delivery closed +4.4% for the week at $79.68/bbl, and May Brent crude (CO1:COM) settled +3.6% this week at $85.83/bbl.
Front-month Nymex natural gas (NG1:COM) scored its best weekly rally since November, +18.1% to $3.009/MMBtu, although the price has still dropped by a third so far this year.
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Prices on Friday fell more than $2/bbl following a Wall Street Journal report that the United Arab Emirates had held internal debates on leaving OPEC so it could pump more oil, a decision that would shake the cartel and reduce its power in global markets.
The UAE has long wanted to pump more oil, but it is obligated to produce much less than it is capable of within Saudi-led OPEC, hurting its oil revenue.
Crude oil resumed gains after UAE officials said there was no plan to leave the group.
The UAE’s speedy response to the WSJ report is “telling of its conviction to prevent oil prices sliding,” said Christyan Malek, global head of energy strategy at J.P. Morgan.
The top oil and gas sector ETF (NYSEARCA:XLE) ended the week +2.7%.
Top 10 gainers in energy and natural resources during the past 5 days: (NASDAQ:VTNR) +39.5%, (SND) +39.2%, (MUX) +33.8%, (NGL) +26.9%, (ICD) +23.4%, (DRQ) +21.9%, (AMPY) +21.9%, (ATLX) +21%, (ERO) +20.6%, (GPOR) +20.6%.
Top 5 decliners in energy and natural resources during the past 5 days: (EGLE) -15.4%, (USDP) -13.1%, (LEU) -12.2%, (AZRE) -11.8%, (CLNE) -11%.
Source: Barchart.com