Why The Energy Sector Is Trading Lower Today

Shares of several energy companies, such as BP BP, Exxon Mobil XOM and Chevron CVX, are trading lower after API reported an 8.42 million barrel build in crude oil inventories.

The energy industry has been extremely volatile as news from both the bullish and bearish side of the market hit the sector. The COVID-19 pandemic staggered the demand for oil, which is a negative catalyst, but OPEC+ extended its production cut, which is a positive catalyst for the sector.

Although the economy is reopening and OPEC+ extended its production cuts, the API data still showed a build in inventory, which means there is still some oversupply in the market.

The energy sector quite literally fuels the world. There are many different types of companies in the industry, which include extraction, manufacturing, refining and distribution companies.

The United States Oil Fund USO was trading 0.42% lower at $28.30 at time of publication on Wednesday. The ETF has a 52-week high of $106.56 and a 52-week low of $16.88.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsCommoditiesEcon #sMarketsMoversTrading Ideaswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!