U.S. benchmark crude oil (USO) closed -2.4% on Friday but climbed 3.5% for the week to $92.09/bbl, as improved prospects for U.S. gasoline demand and gas-to-oil switching at European power stations raised optimism for crude after tumbling nearly 10% a week earlier.
WTI’s (CL1:COM) gains this week were also a reaction to weakness in the dollar after better than expected inflation data that altered interest rate expectations from the Fed, but the dollar rebounded strongly on Friday, which fueled some of oil’s drop.
U.S. natural gas prices (NG1:COM) ended -1.2% on Friday but jumped 8.7% on the week at $8.768/MMBtu, sparked by several factors including an improved outlook for demand and less talk of recession, but Europe’s energy crisis continues to support prices as global demand for liquefied natural gas looks to keep U.S. exports running at full tilt.
Energy (NYSEARCA:XLE) was the week’s top stock sector, surging more than 9% to more than make up for last week’s shellacking.
Top 10 gainers in energy and natural resources during the past 5 days: (NASDAQ:PLL) +41.5%, (CGRN) +36.1%, (KLXE) +34%, (WTI) +33.9%, (BWEN) +31.1%, (TPIC) +30.6%, (LITM) +26.5%, (BE) +26.4%, (IREN) +25.5%, (AMPY) +24.9%.