SPDR S&P Oil & Gas Explor & Product (ARCA: XOP)

Dernières nouvelles pour SPDR S&P Oil & Gas Explor & Product (ARCA:XOP)

SPDR S&P Oil & Gas Explor & Product

Energy

Basic Materials

Healthcare

Consumer Cyclical

In seeking to track the performance of the S&P Oil & Gas Exploration & Production Select Industry Index, the fund employs a sampling strategy. It generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The index represents the oil and gas exploration and production segment of the S&P Total Market Index (S&P TMI).

Apa Corp.

Matador Resources Co

Exxon Mobil Corp.

Diamondback Energy Inc.

Civitas Solutions Inc

Eog Resources Inc

Hess Corp.

Valero Energy Corp.

Phillips 66

Chord Energy Corp.

Texas Pacific Land Trust

Antero Resources Corp

Eqt Corp

Coterra Energy Inc

Range Resources Corp

Devon Energy Corp.

Chesapeake Energy Corp

Chevron Corp.

Murphy Oil Corp

Cnx Resources Corp

Ovintiv Inc.

SPDR S&P Oil & Gas Exploration & Production ETF

President Donald Trump has expressed fury over recent remarks by Russian President Vladimir Putin suggesting Ukrainian President Volodymyr Zelenskyy should be replaced. 
What Happened: In a weekend interview, Trump said he was "very angry" and warned of economic retaliation if Russia fails to cooperate on halting the Ukraine war.
Putin proposed a transitional government for Ukraine, which would effectively push out Zelenskyy. Trump, in response, threatened to impose sweeping &#8220;secondary tariffs&#8221; on any country purchasing Russian oil, including a 25% to 50% tariff on Russian crude and related products.
Trump made Ukraine a centerpiece of his foreign policy agenda and has pushed for an end to the war. His team helped broker a partial ceasefire between Russia and Ukraine, allowing safe passage in the Black Sea and a halt on attacks targeting energy infrastructure. But tensions with Moscow remain high.
Also Read: <a href="https://www.benzinga.com/news/global/25/03/44450604/putin-prayed-for-his-friend-trump-at-church-after-assassination-attempt">Putin Prayed for &#8216;His Friend&#8217; Trump at Church After Assassination Attempt</a>
"If Russia and I are unable to make a deal on stopping the bloodshed in Ukraine, and if I think it was Russia's fault — which it might not be — but if I think it was Russia's fault, I am going to put secondary tariffs on oil, on all oil coming out of Russia," Trump <a href="https://www.nbcnews.com/politics/donald-trump/trump-angry-putin-zelenskyy-iran-sanctions-rcna198729">told </a>to NBC News.
Despite previous criticism of Zelenskyy, Trump signaled he would act against Putin if diplomacy fails. He also said he plans to speak with Putin again this week. "The anger dissipates quickly… if he does the right thing," Trump said, describing their relationship as "very good."
Trump said he also "was pissed off" about Putin's comments about temporary governance and that his anger about Putin's comments had been made known to Moscow.
Trump's tariff threats echo a similar strategy he applied to Venezuela, where countries importing oil from Caracas risked U.S. trade penalties. The same could apply to top buyers of Russian oil such as China, India, Turkey, and Brazil.
Read Next
<a href="https://www.benzinga.com/news/global/25/01/43216865/putin-agrees-with-trump-ukraine-war-avoidable-if-trump-had-been-in-office" target="_blank" rel="noreferrer noopener">Putin Agrees With Trump: Ukraine War Avoidable if Trump Had Been in Office</a>
Image: Shutterstock

News

Global

Trump Threatens Russian Oil Tariffs, Says He's 'Very Angry' At Putin

Officials from the U.S. and Russia have commenced discussions in Saudi Arabia. The goal of these talks is to establish a comprehensive ceasefire in Ukraine and a distinct Black Sea maritime agreement.
What Happened: These talks come on the heels of U.S. negotiations with Ukraine that took place in Saudi Arabia on Sunday. The discussions are a part of U.S. President Donald Trump&#8216;s escalated efforts to resolve the conflict that has been ongoing for three years. The U.S. delegation is spearheaded by Andrew Peek, a senior director at the White House National Security Council, and Michael Anton, a senior State Department official, reported the Reuters on Monday.
The talks primarily aim to secure a maritime ceasefire in the Black Sea to enable free shipping. Russia&#8217;s delegation features Grigory Karasin, the chair of the Foreign Affairs Committee in the upper house of parliament, and Sergei Beseda, an adviser to the Federal Security Service&#8217;s director.
Trump has expressed satisfaction with the progress of the talks and lauded Russian President Vladimir Putin&#8216;s involvement. However, major European powers remain doubtful about Putin&#8217;s readiness to make significant concessions.
The talks also aim to discuss &#8220;the line of control&#8221; between the two countries, peacekeeping, and &#8220;confidence-building measures,&#8221; including the repatriation of Ukrainian children taken by Russia.
About Ukraine honoring the terms of the Black Sea Grain Deal, Kremlin spokesman Dmitry Peskov stated, &#8220;But if you remember the initiative in its previous form, there was quite a large part of the obligations to our country that were not fulfilled last time. Therefore, this will also be on the agenda today.&#8221;
SEE ALSO: <a href="https://www.benzinga.com/general/space/25/03/44454270/crypto-tycoon-joins-forces-with-elon-musks-spacex-to-launch-first-private-space-station">Crypto Tycoon Joins Forces With Elon Musk&#8217;s SpaceX To Launch First Private Space Station</a>
Why It Matters: These discussions follow the Trump administration&#8217;s push for <a href="https://www.benzinga.com/25/03/44435337/trump-administration-pushes-for-revised-terms-to-access-ukraines-critical-resources-amid-peace-talks-report">revised terms to access </a>Ukraine&#8217;s critical resources amid peace talks. The U.S. is persuading Kyiv to agree to comprehensive terms about the ownership and control of a joint investment fund. This could potentially extend to U.S. ownership of other economic assets in Ukraine, such as nuclear power plants.
 Trump announced that the U.S. is aiming to establish agreements on rare earths and minerals globally, with a special focus on Ukraine. This initiative is part of a larger strategy to secure a peace agreement with Russia.
Following the reports of the peace talks, oil prices climbed on Monday as the Brent crude futures gained 54 cents at $72.18 a barrel by 1102 GMT. IG market strategist Yeap Jun Rong told Reuters, &#8220;&#8230;the broader demand-supply outlook still remains mixed. Ukraine-Russia ceasefire talks raise the prospects of increased Russian exports on an eventual resolution, while the OPEC+ production hike as early as April points to further supply additions.&#8221; 
These developments, along with U.S. sanctions on Iranian exports, make energy ETFs a key area of investor interest. iShares U.S. Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYE#NYSE">IYE</a>) climbed 0.75% over the past month, while SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) dropped 2.57% during the same period. 
<ul>
<li>READ MORE: <a href="https://www.benzinga.com/markets/forex/25/03/44454065/india-china-markets-gain-in-asia-europe-mixed-dollar-eases-global-markets-today-while-us-slept">India, China Markets Gain In Asia, Europe Mixed; Dollar Eases &#8211; Global Markets Today While US Slept</a></li>
</ul>
Image via Shutterstock
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
<a rel="noreferrer noopener" href="https://www.benzinga.com/quote/xop" target="_blank"></a>

Markets

iShares Dow Jones US Energy Sector Index Fund

Oil Rises As US And Russia Begin Talks In Saudi Arabia For Ukraine Ceasefire, Black Sea Deal

Oil prices fell 1% Tuesday with geopolitical change and economic uncertainty contributing to market expectations. 
<a href="https://www.benzinga.com/news/global/25/03/44384160/oil-prices-slip-energy-stocks-pause-as-trump-putin-call-signals-ukraine-ceasefire-progress">Diplomatic talks between</a> U.S. President Donald Trump and Russian President Vladimir Putin encouraged the prospect of a Ukraine ceasefire that might relax sanctions on Russian fuel exports, according to Reuters. But analysts warn it will take time for a meaningful recovery in Russian oil output. While this is, at least in part, due to the effects of Trump&#8217;s trade tariffs on energy demand, there are a number of other factors coming into play. These combine to create a complicated energy scenario, making <a href="https://www.benzinga.com/etfs">energy ETFs</a> a focal point of investor interest.
<h1 class="wp-block-heading">How Energy ETFs Fit Into The Picture</h1>
ETFs provide exposure to the energy sector with risk management against changing oil prices and geopolitical events. Here&#8217;s how various kinds of energy ETFs could be impacted:
Diversified Energy ETFs: These offer diversified exposure to exploration, production, refining and transport, enabling investors to control volatility. Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) and the iShares U.S. Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYE#NYSE">IYE</a>) are options to consider, with expense ratios of 0.08% and 0.4%, respectively.
Exploration and Production (E&amp;P) ETFs: Concentrated on extracting oil and gas, these ETFs can experience volatility due to changes in supply and demand. Investors may look at the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) and the iShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEO#BATS">IEO</a>). The ETFs carry an expense ratio of 0.35% and 0.4%, respectively.
Midstream ETFs: Comprising less price-volatile components, these may be rewarded with higher oil transport and storage requirements. Examples include the Alerian MLP ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMLP#NYSE">AMLP</a>) and the Global X MLP ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MLPA#NYSE">MLPA</a>), with expense ratios of 0.85% and 0.45%, respectively.
Also Read: <a href="https://www.benzinga.com/25/03/44217245/us-shale-industry-set-to-boost-oil-output-despite-falling-prices-says-energy-secretary-the-economics-of-shale-dont-work-says-expert">US Shale Industry Can Deliver Trump&#8217;s Pledge For &#8216;Drill, Baby, Drill&#8217; Despite Falling Prices, Says Energy Secretary: &#8216;The Economics Of Shale Don&#8217;t Work,&#8217; Says Expert</a>
<h1 class="wp-block-heading">Contributing Factors To Slowing Oil Prices</h1>
• If sanctions against Russia are relaxed, its crude output — presently at 9.2 million barrels per day (bpd), from 10.6 million bpd in 2016 — might rise. But significant supply shifts might not be immediate, per the Reuters report.
• Trump's tariffs are pressuring global growth. The OECD warns of slower growth, while Wood Mackenzie cut its 2025 Brent crude forecast by $7 to $73 per barrel, according to Reuters.
• OPEC+ is going ahead with its scheduled April output increase, pumping additional supply into the market.
• Middle East uncertainty is another underpinning factor in oil prices. Trump&#8217;s military intervention in support of Iran-aligned Houthis in Yemen and Israeli airstrikes on Gaza inject volatility into the global oil supply.
• Chinese and German economic stimulus may be able to sustain oil demand, offsetting some of the pressure on prices lower.
• This week, the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA) will report on oil inventories. Reuters reported that a 0.9 million barrel build is expected by analysts, which may have an impact on short-term price action.
Oil prices continue to be very volatile based on geopolitical and economic reasons. Energy ETFs provide investors with the means to ride out these changes, managing risk while achieving opportunity. Monitoring worldwide trends and inventory reports will be paramount in making smart investment decisions.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/sector-etfs/25/03/44382780/3-best-performing-semiconductor-etfs-since-last-gtc-and-why-this-time-is-different">3 Best-Performing Semiconductor ETFs Since Last GTC And Why This Time Is Different</a></li>
</ul>
Photo: Shutterstock

Sector ETFs

Commodities

ETFs

AMLP

iShares Dow Jones US Oil & Gas Exploration & Production Index Fund

MLPA

Oil Prices Ease: What It Means For Energy ETFs, Investors

The Trump administration is exploring a strategy to halt and examine Iranian oil tankers at sea as part of an international agreement aimed at curbing the spread of <a href="https://www.benzinga.com/25/02/43480859/trump-confirms-maximum-economic-pressure-on-iran-calls-chinas-tariff-retaliation-fine">weapons of mass destruction</a>.
What Happened: According to Reuters, Trump officials are considering enabling allied nations to stop and inspect vessels passing through critical maritime routes such as Asia's Malacca Strait.
Such actions could delay crude deliveries to refiners and potentially damage the reputations of those involved in facilitating these trades.
The administration is evaluating whether these sea inspections could be conducted under the Proliferation Security Initiative (PSI), a U.S.-led program launched in 2003 with the participation of over 100 countries to prevent the movement of weapons of mass destruction. 
See Also: <a href="https://www.benzinga.com/markets/equities/25/03/44157043/jim-cramer-doubles-down-on-crowdstrike-despite-drop-analysts-who-were-so-negativehad-it-wrong">Jim Cramer Doubles Down On CrowdStrike Despite Drop: &#8216;Analysts Who Were So Negative…Had It Wrong&#8217;</a>
Why It Matters: Opponents of Tehran's oil revenue say it supports nuclear proliferation as well as terrorism.
However, past attempts to seize Iranian oil have sparked retaliation from Tehran. In 2023, Iran seized foreign ships—one chartered by Chevron (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>)—after the U.S. attempted to intercept Iranian oil cargoes.
&#8220;You don't have to sink ships or arrest people to have that chilling effect that this is just not worth the risk,&#8221; said one source, emphasizing that delivery delays could sow uncertainty in illicit trade networks. 
Analysts warn that the longer sanctions remain in place, the more Iran and its oil buyers will find ways to circumvent them.
With Iran's oil revenues largely tied to exports to China, any prolonged disruption could have significant economic impacts. 
<h2 class="wp-block-heading">ETFs To Watch</h2>
During pre-market hours on Thursday, <a href="https://pro.benzinga.com">Benzinga Pro</a> showed: 
<ul>
<li>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) fell by 0.17%,</li>
<li>United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) dropped 2.58%,</li>
<li>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) decreased by 0.39%, and</li>
<li>MicroSectorsTM Oil &amp; Gas Exploration &amp; Production 3X Leveraged ETNs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILU#NYSE">OILU</a>) saw a 0.28% drop,</li>
</ul>
Now Read:
<ul>
<li><a href="https://www.benzinga.com/markets/forex/25/03/44161314/us-stocks-likely-to-open-lower-after-wednesdays-blip-be-patient-but-be-ready-to-act-says-analyst-as-market-uncertainties-can-create-opportunities">US Stocks Likely To Open Lower After Wednesday&#8217;s Blip: &#8216;Be Patient, But Be Ready To Act,&#8217; Says Analyst As Market Uncertainties Can Create &#8216;Opportunities&#8217;</a></li>
</ul>
Image: Shutterstock

Government

Politics

OILU

Trump Administration Weighs Sea Inspections Of Iranian Oil Tankers

Editor's Note: This article has been updated to clarify that Elliott Investment Management purchased convertible senior notes of Wolfspeed and MicroStrategy.
Elliott Investment Management made several portfolio moves in the fourth quarter, closing multiple options positions and shaking up the activist firm&#8217;s <a href="https://www.benzinga.com/trading-ideas/long-ideas/25/02/43811538/5-top-tech-stocks-hedge-funds-have-been-bullish-on-in-q4-hint-its-not-nvidia">technology exposure</a>.
According to a new&nbsp;<a href="https://www.sec.gov/Archives/edgar/data/1791786/000101359425000294/xslForm13F_X02/primary_doc.xml" target="_blank" rel="noreferrer noopener">13-F</a>&nbsp;filing with the U.S. Securities and Exchange Commission, Elliott added the following new positions in the fourth quarter:
<ul>
<li>Wolfspeed Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOLF#NYSE">WOLF</a>) 0.25% and 1.875% convertible senior notes</li>
</ul>
<ul>
<li>NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) put options</li>
</ul>
<ul>
<li>SPDR Select Sector Fund Industrial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>) put options</li>
</ul>
<ul>
<li>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) put options</li>
</ul>
Here's a look at all of the positions Elliott added to during the fourth quarter:
<ul>
<li>Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) increased by 369%</li>
</ul>
<ul>
<li>MicroStrategy Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) increased convertible senior notes by 200%</li>
</ul>
<ul>
<li>CorMedix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRMD#NASDAQ">CRMD</a>) increased by 85%</li>
</ul>
<ul>
<li>HDFC Bank Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HDB#NYSE">HDB</a>) increased by 6%</li>
</ul>
Here&#8217;s a look at all of the positions Elliott closed during the fourth quarter:
<ul>
<li>Catalent Inc (CTLC) </li>
</ul>
<ul>
<li>Cardinal Health Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAH#NYSE">CAH</a>)</li>
</ul>
<ul>
<li>Unity Software Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/U#NYSE">U</a>)</li>
</ul>
<ul>
<li>BILL Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BILL#NYSE">BILL</a>)</li>
</ul>
Elliott closed out of calls in several names including Arm Holdings, American Airlines and Alaska Air Group. The firm also closed multiple put positions including Equinix, Hyatt Hotels and Host Hotels.
Here's a look at all of the positions Elliott trimmed during the fourth quarter:
<ul>
<li>ICON Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ICLR#NASDAQ">ICLR</a>) decreased by 62%</li>
</ul>
<ul>
<li>RingCentral Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RING#NYSE">RING</a>) decreased by 55%</li>
</ul>
<ul>
<li>NRG Energy Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>) decreased by 50%</li>
</ul>
<ul>
<li>Confluent Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CFLT#NASDAQ">CFLT</a>) decreased by 37%</li>
</ul>
<ul>
<li>Southwest Airlines Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) decreased by 2%</li>
</ul>
The above information does not include call or put options that were added to or trimmed&nbsp;during the quarter.
This information was gathered using comparison tools from&nbsp;<a href="https://13f.info/13f/000101359425000294/compare/000101359424000968" target="_blank" rel="noreferrer noopener">13f.info</a>.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/25/02/43811538/5-top-tech-stocks-hedge-funds-have-been-bullish-on-in-q4-hint-its-not-nvidia">5 Top Tech Stocks Hedge Funds Have Been Bullish On In Q4 (Hint: It&#8217;s Not Nvidia)</a></li>
</ul>
This illustration was generated using artificial intelligence via Midjourney.

Hedge Funds

Trading Ideas

BILL

CFLT

CRMD

ICLR

MSTR

NVDA

RING

WOLF

Elliott Investment Management Bets Against Nvidia In Q4 (CORRECTED)

President Donald Trump, while hosting a White House meeting with Jordan&#8217;s King Abdullah at the White House Tuesday, reiterated his threat that the U.S. will take control of the Gaza Strip and move the nearly two million Palestinians living there to either Jordan <a href="https://www.benzinga.com/topic/gaza">or Egypt or somewhere</a>.
Asked whether the U.S. would cut billions in financial aid to the two countries if they refused to accept the transfer of Palestinians, Trump sounded confident that Jordan and Egypt would carry out his wishes.
"I don't have to threaten that. I do believe we're above that," Trump said, contradicting his previous suggestion that holding back aid was a possibility.
<h2 class="wp-block-heading">How Will The US Attain Gaza?</h2>
Trump said the US could come to control Gaza without committing any money. 
&#8220;We are not going to buy Gaza&#8230;we are going to take it and cherish it,&#8221; Trump said. &#8221; It will bring peace to the Middle East. It is going to be a tremendous thing and put a lot of people to work.&#8221; 
Speaking in broad strokes, Trump insisted that there has been overwhelming support for his plan to turn Gaza into a resort, though in fact most world leaders <a href="https://www.benzinga.com/news/25/02/43503385/trumps-gaza-plan-for-seaside-resort-faces-global-pushback">criticized his plan</a> when it was first announced.
Trump suggested that the redeveloped area could have new hotels, office buildings and houses and "and we'll make it exciting." 
Trump then waxed on about what a successful real estate magnate he is. "I can tell you about real estate. They're going to be in love with it," he said.
<h2 class="wp-block-heading">King Abdullah, What Say You? </h2>
When pressed by reporters specifically as to whether he agreed to the transfer of Palestinians from Gaza, King Adbullah said that more talks will be held soon with Egypt to discuss the issue. Egypt has also condemned Trump&#8217;s plan. 
The King said that Jordan would need to take into consideration how it could or would be able to take Palestinians into his country. The kingdom already shelters 700,000 Syrian refugees and lacks the oil wealth of its neighbors, making continued U.S. aid crucial. Jordan receives nearly $2 billion in foreign aid to Jordan, which contributes at least 42% to the country&#8217;s total economy
&#8220;This is something that we as Arabs will discuss later and talk about the options,&#8221; King Abdullah said. 
Two Palestinians from Michigan told Benzinga that they thought the King played his cards close to his chest and that deferring to upcoming talks with Egypt &#8220;was a good idea. He [Trump] already walked back the threat of cutting aid to both Egypt and Jordan.&#8221;
Analysts from various outlets agreed that King Abdullah held back in the short press briefing during which Trump did most of the talking. Though ahead of Tuesday's meeting, King Abdullah had reaffirmed his commitment to a two-state solution and the need for a "just and comprehensive peace" in the region. 
In terms of Israel&#8217;s plan to annex the mostly Palestinian West Bank, Trump said, &#8220;That&#8217;s going to work out.&#8221;
Abdullah also announced that Jordan was intending to bring to Jordan 2,000 Palestinian children from Gaza in need of cancer treatment, which Trump said was a beautiful thing.
<h3 class="wp-block-heading">ETFs To Watch</h3>
According to <a href="https://pro.benzinga.com">Benzinga Pro</a>, oil ETFs were in the green at last check Tuesday:
<ul>
<li>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) is up by 2.65%</li>
<li>United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) is up by 1.25%</li>
<li>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) is up by 0.9%</li>
<li>MicroSectorsTM Oil &amp; Gas Exploration &amp; Production 3X Leveraged ETNs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILU#NYSE">OILU</a>) saw a 2.94% uptick</li>
</ul>
Now Read:
<ul>
<li><a href="https://www.benzinga.com/markets/25/02/43621302/justin-trudeau-slams-unacceptable-us-tariffs-after-trump-imposes-25-levy-on-metal-imports-canadians-will-stand-up-strongly-and-firmly-if-we-need-to">Justin Trudeau Slams &#8216;Unacceptable&#8217; US Tariffs After Trump Imposes 25% Levy On Metal Imports : &#8216;Canadians Will Stand Up Strongly And Firmly If We Need To&#8217;</a></li>
</ul>
Palestinian refugees in Gaza: Shutterstock

Trump Says We Will 'Take Gaza' And 'Cherish It' In White House Meeting With Jordan's King Abdullah

Trump's first day in office brought a wave of executive orders targeting immigration, energy, social policies, and announcing the withdrawal from global agreements like the Paris Climate Accord and <a href="https://www.benzinga.com/topic/donald-trump">the World Health Organization. </a>
Trump also pledged to raise tariffs up to 25% on both Canada and Mexico starting Feb. 1, but fell short of announcing universal tariffs on all imports.
Following Monday&#8217;s market closure for Martin Luther King Jr. Day, investors began assessing how Trump's new policy measures could impact sectors across the board. 
Gold miners and defense stocks outperformed, while solar energy companies were among the hardest hit.
<h3 class="wp-block-heading">Wall Street&#8217;s Winners And Losers After Trump&#8217;s Day 1</h3>
Gold miners were among the standout performers, amid rising trade fears between the U.S. and Canada. 
The VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>) climbed 2.6% by 1:30 p.m. ET Tuesday. Leading gains were Harmony Gold Mining Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HMY#NYSE">HMY</a>), up 4.3% and Endeavour Silver Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EXK#NYSE">EXK</a>), up 3.1%.
&#8220;While President Trump's Inauguration Day policy announcements on tariffs were more benign than expected, we continue to expect the White House to increase tariff rates on autos and imports from China, and we see other tariff proposals as a risk,&#8221; Goldman Sach&#8217;s analyst Elsie Peng wrote in a note Tuesday.
Defense stocks also surged as Trump's policies emphasized national security and border protection declaring a &#8220;national emergency&#8221; at the southern border with Mexico. The iShares U.S. Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>) rose 3.3%.
Other notable movers included the U.S. Global Jets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JETS#NYSE">JETS</a>), up 2%, and the SPDR S&amp;P Metals &amp; Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XME#NYSE">XME</a>), which rose 1.6% as investors bet on increased demand for industrial materials.
Oil and gas exploration companies saw declines despite <a href="https://www.benzinga.com/government/regulations/25/01/43097430/trumps-drill-baby-drill-era-begins-oil-prices-tumble-us-energy-stocks-edge-up">Trump's "Drill, Baby, Drill"</a> push to unleash U.S. energy resources. The SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) dropped 1.1%, signaling concerns about potential oversupply.
Clean energy and solar stocks, however, suffered from Trump's decision to halt offshore wind leasing and withdraw the U.S. from the Paris Climate Accord. 
The Invesco Solar ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAN#NYSE">TAN</a>) fell 3.1%, with losses from Daqo New Energy Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DQ#NYSE">DQ</a>), down 6.7%, and First Solar Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FSLR#NASDAQ">FSLR</a>), which dropped 5.4%. The Invesco WilderHill Clean Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBW#NYSE">PBW</a>) slipped 1%.
Read Next: 
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<li><a href="https://www.benzinga.com/25/01/43103527/mexican-peso-canadian-dollar-slide-as-trump-threatens-25-tariffs-expert-eyes-price-hikes-on-typical-us-breakfast">Mexican Peso, Canadian Dollar Slide As Trump Threatens 25% Tariffs, Economist Eyes Price Hikes On &#8216;Typical US Breakfast&#8217;</a></li>
</ul>
Photo: Shutterstock

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Mid Cap

Regulations

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FSLR

Market Vectors ETF Trust Market Vectors Gold Miners

iShares Dow Jones US Aerospace & Defense Index Fund

JETS

PowerShares Exchange Traded Fund Trust WilderHill Clean Energy Portfolio

Trump's First Day Sends Gold Miners, Defense Stocks Soaring, Solar Sliding

Donald Trump wasted no time in his return to the White House, signing a flurry of executive orders, and, most notably, declaring <a href="https://www.benzinga.com/government/regulations/25/01/43086509/trump-unleashes-executive-orders-on-border-security-oil-drilling-domestic-manufacturing-in-first-acts-as-president">a national energy emergency. </a>
During his inauguration speech on Monday, he reaffirmed his commitment to fossil fuels, pledging to &#8220;drill, baby, drill&#8221; and revoke the electric vehicle mandate. 
&#8220;The inflation crisis was caused by massive overspending and escalating energy prices. And that is why today I will also declare a national energy emergency. We will drill, baby, drill,&#8221; Trump said. 
Trump also announced his intent to withdraw the U.S. from the Paris Climate Accord, calling wind turbines "ugly" and reiterating his policy against renewable energy expansion. His focus is clear: expand drilling, restore the Strategic Petroleum Reserve and flood global markets with U.S. oil and gas.
Oil markets are already reacting, but will this push for American energy dominance send crude prices soaring or lead to an oversupply crisis?
<h3 class="wp-block-heading">What Happens To Oil Prices?</h3>
The immediate impact of Trump's pro-drilling stance on oil markets has been strong, with traders already reassessing their outlooks on crude prices. 
The U.S. benchmark West Texas Intermediate crude – as tracked by the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) – tumbled by 2.6% during morning trading on Tuesday, heading for a third straight session of losses. 
"Mr. Trump's full-throated yell for U.S. producers to: ‘Drill, baby, drill!' is not new. And it's perfectly logical that prices should fall at the prospect of increased supply. But producers are highly price-sensitive, and there comes a time/price where it's uneconomical to raise production," commented David Morrison, senior market analyst at Trade Nation.
&#8220;Day 1 executive orders in these areas are expected to be followed by further action in the coming days and weeks, with Trump set to test the limits of presidential authority to pursue an agenda that aims to unravel Biden's energy and climate policies,&#8221; wrote Energy Intelligence in a note Tuesday. 
David Goldman, head of trading at Novion said Trump's policy shift "is unlikely to have any significant impact in the short term but may have bearish repercussions in the long term."
Goldman highlighted that a sharp increase in U.S. production, particularly if global demand slows due to the ongoing transition to renewable energy, could weigh on prices. "Increased production without sufficient export infrastructure risks bottlenecks, while protectionist trade measures could stifle international cooperation and reduce market efficiency."
<h3 class="wp-block-heading">Energy Stocks See A Small Lift</h3>
Oil and gas stocks saw modest gains in premarket trading Tuesday as investors weighed the potential for increased drilling activity. 
The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), which tracks major oil companies, was up 0.1% during premarket trading, while the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) saw similar gains.
Among individual stocks:
<ul>
<li>Halliburton Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAL#NYSE">HAL</a>) rose 1.67% </li>
<li>Texas Pacific Land Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>) gained 1.04%</li>
<li>Schlumberger Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>) climbed 1.04% to $44.03</li>
<li>Kinder Morgan Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMI#NYSE">KMI</a>) increased 0.96% to $30.60</li>
<li>Baker Hughes Co. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKR#NASDAQ">BKR</a>) moved 0.90% higher to $46.96</li>
</ul>
Smaller energy players saw sharper moves, with Gulfport Energy Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GPOR#NYSE">GPOR</a>) surging 9.13% to $213.25 and Sable Offshore Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOC#NYSE">SOC</a>) jumping 5.20% to $25.77.
Read now: 
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<li><a href="https://www.benzinga.com/markets/futures/25/01/43093520/us-stocks-set-to-open-on-a-positive-note-as-trumps-second-white-house-term-kicks-off-tesla-apple-netflix-among-stocks-in-focus">US Stocks Set To Open On A Positive Note As Trump&#8217;s Second White House Term Kicks Off: Tesla, Apple, Netflix Among Stocks In Focus</a></li>
</ul>
Photo Shutterstock

Economics

GPOR

Trump's 'Drill, Baby, Drill' Era Begins: Oil Prices Tumble, US Energy Stocks Edge Up

Oil prices are heating up, and so are the stocks of <a href="https://www.benzinga.com/topic/energy">major energy companies</a>. 
Shares of Chevron Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>), Occidental Petroleum (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>), and ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>) were trading in the green at the last check on Friday. The rally follows a Reuters report suggesting the U.S. is preparing its most <a href="https://www.benzinga.com/etfs/sector-etfs/25/01/42919047/oil-nears-80-as-us-prepares-new-russia-sanctions">stringent sanctions yet</a> against Russian oil.
These sanctions, expected to target 180 vessels, major <a href="https://www.benzinga.com/topic/oil?_gl=1&#x2A;1aeuuae&#x2A;_gcl_au&#x2A;MTQ3Nzg4MTMxMi4xNzM1NTczMTA3&#x2A;_ga&#x2A;R1MxLjEuMTczNjUyMjc2NC4xLjEuMTczNjUyMjg4Ni4wLjAuMA..&#x2A;_ga_V7ZK73W7N0&#x2A;MTczNjUyMDk1NC40Ni4xLjE3MzY1MjY3NDYuMC4wLjA.">oil </a>companies, and top executives, have already pushed oil prices to $80 per barrel — a level not seen since October 2024. 
Traders are responding to the anticipated disruption in global oil supply, and some ETFs with oil and energy exposure stand to reap the benefits.
<h3 class="wp-block-heading">What This Means For ETFs</h3>
<ul>
<li>The United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) was trading 3.73% higher as of 12.13 P.M. EST</li>
<li>The Invesco DB Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBO#NYSE">DBO</a>) rose about 3.84%. </li>
<li>The United States 12 Month Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USL#NYSE">USL</a>) posted a 2.21% gain.</li>
<li>The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>), with an expense ratio of 0.09% and a 91.26% exposure to the Oil, Gas &amp; Consumable Fuels make it a good bet for investors of oil-focused ETFs. The portfolio includes Exxon Mobil, Chevron and ConocoPhillips.</li>
<li>Vanguard Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDE#NYSE">VDE</a>) has an expense ratio of 0.10% and like XOP, Exxon Mobil, Chevron and ConocoPhillips enjoys significant weightage in the fund.</li>
</ul>
<h3 class="wp-block-heading">Geopolitics and Market Dynamics</h3>
Sanctions on Russia — one of the world's largest oil producers — are expected to tighten supply. Prices are expected to go higher. Ongoing reduction in U.S. crude stockpiles, particularly at the Cushing, Oklahoma hub, as reported by Reuters, adds to the pressure.
While tighter supplies drive prices upward, concerns about demand persist. China&#8217;s fuel oil imports are likely to fall early 2025 thanks to a hike in oil import tax from Jan. 1. 
Weaker demand from China, one of the biggest crude oil importers, could weigh on prices in the longer term. 
See Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42340255/opec-extends-oil-output-cuts-to-late-2026-what-it-means-for-markets">OPEC+ Extends Oil Output Cuts To Late 2026: What It Means For Markets</a></li>
</ul>
Photo: Shutterstock

Oil Stocks Rally On Anticipation Of Stricter Russian Sanctions: Here's How ETFs Are Reacting

The United States announced the toughest sanctions yet on <a href="https://www.benzinga.com/topic/oil">Russia's oil industry</a> on Friday.
What To Know: The news pushed global oil prices up by 3%, nearing $80 per barrel. The sanctions are part of Washington&#8217;s ongoing measures to penalize Russia for its invasion of Ukraine, aiming to disrupt oil exports to major buyers like India and China.
The measures include the blacklisting of 183 vessels involved in Russian energy exports, which could significantly disrupt the flow of oil. Previously, a Financial Times <a href="https://www.ft.com/content/7c0981bb-9b7a-4737-8f3f-65325a1d768a">analysis </a>showed that the 54 tankers sanctioned by the U.S. were forced to carry dramatically less oil due to heightened risks, hinting at potentially larger ramifications this time.
Read Also: <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/42913622/dollar-soars-to-27-month-highs-30-year-yields-hit-5-stocks-tumble-jobs-report-oil-spike-darken-feds-interest-rate-cut-hopes">Dollar Soars To 27-Month Highs, 30-Year Yields Hit 5%, Stocks Tumble As Jobs Report, Oil Spike Darken Fed&#8217;s Interest Rate Cut Hopes</a>
Key targets include Russian oil giants Gazprom Neft and Surgutneftegaz, along with insurers Ingosstrakh and Alfastrakhovanie, which cover a significant portion of Russian oil shipments, Reuters reports. This move could intensify challenges for Russia, which has shifted oil exports to Asia since Western sanctions in 2022 curtailed its European markets.
The U.S. Treasury noted that the UK would coordinate and apply sanctions on Gazprom Neft and Surgutneftegaz alongside Washington, FT reports.
The sanctions also target active Russian liquefied natural gas (LNG) facilities and foreign organizations that support Russia's oil exports, further expanding the scope of penalties.
The sanctions, issued just days before President-elect Donald Trump takes office, create a challenge for his administration. Trump, who campaigned on quickly ending the war between Russia and Ukraine, has expressed skepticism about imposing additional sanctions, FT reports.
In September, he stated, &#8220;I want to use sanctions as little as possible.&#8221; Reversing these measures could put him at odds with Congress, where Republican members had been urging President Joe Biden to crack down on Russian energy revenues.
What Else: To adapt, Russia has relied on its fleet of tankers and domestic insurance providers. However, Indian refiners indicated they would avoid tankers or insurers under U.S. sanctions.
Per the Reuters report, India refining sources suggest Russia may further discount crude prices to below $60 to align with Western price caps and retain market access.
Read Also: <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/42912480/us-economy-adds-256000-payrolls-in-december-as-tight-labor-market-tops-forecasts-dollar-treasury-yields-spike">US Economy Adds 256,000 Payrolls In December, Tight Labor Market Tops Forecasts: Dollar, Treasury Yields Spike</a>
Price Action From Key Oil ETFs:
<ul>
<li>Shares of United States Oil Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/USO#NASDAQ">USO</a>) are up 4.8% to $80.99.</li>
<li>Shares of Energy Select Sector SPDR Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NASDAQ">XLE</a>) are up 1.2% to $89.08.</li>
<li>Shares of SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NASDAQ">XOP</a>) are up 2% to $140.40.</li>
</ul>
Image created using photos from Shutterstock.

Oil Surges As US Unleashes Toughest Sanctions On Russia's Energy Sector

At least one aspect of Israel&#8217;s multifront war is expected to come to an end if the militant group Hamas comes to ceasefire terms <a href="https://www.benzinga.com/news/global">with Israel</a>.
What Happened: So far, Hamas has yielded at least two of Israel's demands for a cease-fire agreement in Gaza, according to a Thursday <a href="https://www.wsj.com/world/middle-east/israel-gaza-palestine-ceasefire-hostage-negotiations-d599e1d1">Wall Street Journal</a> report. 
The development comes after previous negotiations collapsed. And, just three months ago, certain <a href="https://www.benzinga.com/news/24/09/40955425/top-us-officials-skeptical-of-israel-hamas-cease-fire-and-hostage-deal-before-bidens-term-ends-repor">senior U.S. officials were skeptical</a> that a hostage-release deal would occur before the end of President Joe Biden‘s term.
The scenario has changed drastically. 
U.S. National Security Adviser Jake Sullivan spoke to the press in Tel Aviv Thursday after meeting with Prime Minister Benjamin Netanyahu in Israel.
&#8220;Hamas started this war,&#8221; Sullivan said, optimistic that a ceasefire and hostage release &#8220;can happen.&#8221;
See below.
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</figure>
Sullivan said he is set to visit Doha, Qatar and Cairo to close a deal &#8220;this month.&#8221; 
Hamas is reportedly willing to allow Israeli forces to stay in Gaza temporarily when the fighting stops, the WSJ reported. A list of hostages, including U.S. citizens, is expected to be released as part of a ceasefire pact.
Whether the ceasefire would last or be fully enforced remains to be seen.
Israel and Hezbollah were expected to <a href="https://www.benzinga.com/news/global/24/11/42199447/netanyahu-backs-cease-fire-deal-with-hezbollah-israeli-hardliner-calls-for-security-zone-inside-lebanon">pause fighting in Lebanon</a> last month, but <a href="https://www.benzinga.com/news/global/24/12/42279102/israel-hezbollah-trade-strikes-in-latest-sign-of-crumbling-ceasefire">attacks continued into December</a>. At least five people were killed in Israeli attacks on southern Lebanon in the last 24 hours, per <a href="https://www.aljazeera.com/news/2024/12/11/israeli-strikes-kill-five-in-southern-lebanon-amid-shaky-ceasefire">Al Jazeera</a>, citing the country's Health Ministry.
Hezbollah began firing rockets toward Israel after Hamas attacked <a href="https://www.benzinga.com/news/23/10/35136071/israel-under-siege-unprecedented-hamas-attack-sparks-intense-clashes-netanyahu-says-we-are-at-war">Israel on Oct. 7, 2023</a>.
Why It Matters: The ceasefire agreement would come as the balance of power in the Middle East changes.
This week, Israel seized the buffer zone as Bashar al-Assad&#8216;s rule in Syria collapsed. Al-Assad and his family were subsequently <a href="https://www.benzinga.com/24/12/42381587/bashar-al-assad-and-his-family-granted-asylum-by-russia-kremlin-source-says-always-spoken-in-favor-of-political-settlement">granted asylum by Russia</a>.
Assad&#8217;s regime was considered a lifeline to Hezbollah.
Traders can gain exposure to oil stocks that are affected by Middle East geopolitcal news via ETFs, or exchange-traded funds. According to <a href="https://pro.benzinga.com">Benzinga Pro</a>:
<ul>
<li>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) is up 0.27% Thursday. </li>
<li>United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) dropped 0.16%.</li>
<li>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) decreased by 0.79%.</li>
<li>MicroSectorsTM Oil &amp; Gas Exploration &amp; Production 3X Leveraged ETNs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILU#NYSE">OILU</a>) saw a 2.39% drop.</li>
</ul>
Israeli stocks, as monitored through the VanEck Israel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ISRA#NYSE">ISRA</a>), are up 25.34% year-to-date.
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42468190/defense-stocks-face-headwinds-as-trumps-doge-targets-spending-cuts-goldman-sachs-downgrades-general-dynamics-to-sell">Defense Stocks Face Headwinds As Trump&#8217;s DOGE Targets Spending Cuts: Goldman Sachs Downgrades General Dynamics</a></li>
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Image: Shutterstock

ISRA

Hamas Relents On Israeli Troops In Gaza, Paves Way For Potential Hostage Release

Editor&#8217;s note: This story was updated to add missing detail in the introduction and further updated to reflect approval of a cease-fire deal by Israel&#8217;s cabinet and U.S. President Joe Biden&#8217;s Tuesday afternoon announcement. Stock price action in the story has been updated and exchange and ticker info for the ISRA ETF has been corrected as well. 
The governments of Israel and Lebanon have accepted a cease-fire deal, President Joe Biden said Tuesday. 
&#8220;Today I have some good news to report from the Middle East,&#8221; Biden said, adding that he spoke with the prime ministers of Israel and Lebanon. 
&#8220;I am pleased to announce that their governments have accepted the U.S. proposal to end the devastating conflict between Israel and Hezbollah,&#8221; said Biden, who made the remarks in the White House Rose Garden. 
The cease-fire is set to take effect at 4 a.m. Wednesday, Biden said.
Hezbollah has not immediately commented on the deal announcement, the New York Times reported. Lebanon&#8217;s government does not control the Hezbollah militant group. 
The deal calls for a 60-day truce, The New York Times reported, and would be overseen by the U.S., United Nations and others. Israel would withdraw forces from Lebanon and Hezbollah would move fighters to north of the Litani River.
Strikes between Israel and Hezbollah have continued during the cease-fire negotiations.
What Happened: The short-term proposal is to pause hostilities for 60 days but with the intention of a lasting truce, according to <a href="https://www.cnn.com/world/live-news/israel-hezbollah-ceasefire-deal-gaza-war-11-26-24-intl-hnk/index.html">CNN</a>, which cited an Israeli official. 
Israeli Prime Minister Benjamin Netanyahu offered three reasons for the cease fire, one being to shift focus to Iran, replenish Israeli troops and put greater pressure on Hamas to release the hostages that were captured <a href="https://www.benzinga.com/news/23/10/35136071/israel-under-siege-unprecedented-hamas-attack-sparks-intense-clashes-netanyahu-says-we-are-at-war">on Oct. 7, 2023</a>.
See Also: <a href="https://www.benzinga.com/24/11/42198266/crude-oil-moves-lower-dicks-sporting-goods-earnings-top-views">Crude Oil Moves Lower; Dick&#8217;s Sporting Goods Earnings Top Views</a>
Why It Matters: Not everyone is so confident the cease-fire will work.
Per the <a href="https://www.nytimes.com/live/2024/11/26/world/israel-hezbollah-lebanon-cease-fire">New York Times</a>, Israel&#8217;s national security minister Itamar Ben-Gvir stressed the need for a "security zone" inside Lebanon to defend against Hezbollah. Otherwise, the two countries risk another war in the future, he said. 
Ben-Gvir did not indicate that a cease-fire decision would cause him to leave Netanyahu's coalition.
<h3 class="wp-block-heading">Market Reactions</h3>
Oil prices were trading down Tuesday, with the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) 0.65% lower at last check. 
Israeli stocks, as monitored through the VanEck Israel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ISRA#NYSE">ISRA</a>) are up 23.5% year-to-date.
Other oil ETFs were in the red at last check Tuesday afternoon.
ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) fell by 0.93%, SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) was down 0.75% ahead of the closing bell and MicroSectorsTM Oil &amp; Gas Exploration &amp; Production 3X Leveraged ETNs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILU#NYSE">OILU</a>) saw a 0.45% drop, according to <a href="https://pro.benzinga.com">Benzinga Pro</a>.
Now Read:
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<li><a href="https://www.benzinga.com/24/11/42198583/will-trump-lead-us-into-trade-war-with-mexico-president-claudia-sheinbaum-rebukes-threats">Will Trump Lead US Into Trade War With Mexico? President Claudia Sheinbaum Rebukes Threats</a></li>
</ul>
Image: Shutterstock.

Ceasefire Deal Between Israel, Hezbollah Takes Effect Wednesday: Biden

Amid&nbsp;Donald Trump&#8216;s recent pledge to boost U.S. oil production significantly, questions arise about the necessity and impact of such a move.&nbsp;Vikas Dwivedi, a global energy strategist at&nbsp;Macquarie Group, has expressed skepticism regarding the need for an additional 3 million barrels per day.
What Happened: Dwivedi discussed the potential impact of Trump&#8217;s second term on the U.S. oil supply. Talking to&nbsp;<a href="https://www.cnbc.com/video/2024/11/25/us-oil-supply-increases-will-be-marginal-with-trump-2point0-macquarie.html">CNBC</a> &#8220;Squawk Box&#8221;&nbsp;on Monday, he said that anticipates only marginal increases in supply, despite Trump&#8217;s <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/42130859/as-trump-backs-drill-baby-drill-his-doge-co-lead-elon-musk-believes-all-energy-generation-will-be-solar-heres-what-ubs-recommends-after-election-dip">&#8220;Drill Baby Drill&#8221; stance.</a>
&#8220;We actually think there will be marginal supply increases from the U.S. The risks to supply will eventually be marginal but in the beginning of the administration, we think, the moves that they will make will increase supply risks,&#8221; Dwivedi said, adding the risks arising particularly through attempts to limit Iranian oil exports. He noted that the Ships Act aims to eliminate entities facilitating Iranian crude sales, but this could inadvertently reduce global oil supply.
Addressing Trump&#8217;s ambitious energy policy, Dwivedi questioned the necessity of increasing U.S. oil production.
&#8220;The real challenge is: does the world need that much oil? And if the U.S. did grow 3 million barrels a day during the Trump Administration, that&#8217;s like 750,000 a day over four years,&#8221; he explained
&#8220;I think the right question to ask energy executives is are you okay with $40 oil because I think that&#8217;s what you would end up with and are you okay with trying to figure out how to maintain production and um you know still be able to do the dividends and the share buybacks that are now not as discretionary as they used to be.&#8221;
Furthermore, Dwivedi highlighted the geopolitical risks associated with a rapid U.S. withdrawal of support for Ukraine. He warned that if Ukraine feels cornered, it might target Russian oil infrastructure, which could further impact the global oil supply.
See Also:&nbsp;<a href="https://www.benzinga.com/markets/equities/24/11/42153356/is-warren-buffett-preparing-for-a-market-downturn-with-berkshire-hathaways-325b-cash-pile-analyst-says-internet-bubble-and-2008-crash-may-have-lessons?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Is Warren Buffett Preparing For A Market Downturn With Berkshire Hathaway&#8217;s $325B Cash Pile? Analyst Says</a>
Why It Matters: Trump&#8217;s energy strategy, which includes faster permitting and weaker environmental regulations, aims to cut American energy costs significantly. However, experts have warned that these<a href="https://www.benzinga.com/news/24/09/40703958/trumps-drill-baby-drill-pledge-may-not-deliver-promised-energy-price-cuts-experts-warn"> promises may not materialize</a> due to the complexities of global and regional energy markets. Many oil drillers remain cautious about increasing production, opting instead to return cash to shareholders. This hesitancy is compounded by factors like weather patterns and global conflicts, which are not easily influenced by policy changes.
Meanwhile, Elon Musk, who has been announced to head the new Department of Government Efficiency (DOGE), continues to <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/42130859/as-trump-backs-drill-baby-drill-his-doge-co-lead-elon-musk-believes-all-energy-generation-will-be-solar-heres-what-ubs-recommends-after-election-dip">advocate for solar power</a> as the future of energy generation, presenting a different vision from Trump&#8217;s fossil fuel-focused approach. Analysts also see an opportunity for investment in renewables, highlighting the sector&#8217;s potential for growth even amid political shifts.
Price Action: As per <a href="https://pro.benzinga.com">Benzinga Pro</a>, oil ETFs have seen slight gains in the past one month surrounding the presidential elections. As of Monday, ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) increased 3.51%, SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) increased by 10.78%, while MicroSectorsTM Oil &amp; Gas Exploration &amp; Production 3X Leveraged ETNs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILU#NYSE">OILU</a>) increased by 20.99%.
Read Next:&nbsp;
<ul>
<li><a href="https://www.benzinga.com/markets/24/11/42152947/satellite-images-reveal-north-korea-reportedly-receiving-illicit-oil-from-russia?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Satellite Images Reveal North Korea Reportedly Receiving Illicit Oil from Russia</a></li>
</ul>
Image via Shutterstock

General

Amid Trump's 'Drill Baby, Drill' Pledge, Strategist Predicts US Oil Supply Will See 'Marginal' Increase: 'Does The World Need That Much Oil?'

This year&#8217;s <a href="https://www.benzinga.com/markets/esg/24/05/39012013/noaa-meteorologists-predict-aggressive-hurricane-season-what-it-means-for-home-depot-generac-other-s">hurricane season </a>is a deadly one for the eastern and Gulf Coast of the U.S. Several companies and ETFs could be affected by another tropical storm nearing the Gulf Coast.
The Storm: Tropical Storm Rafael, the 17th named storm of the 2024 season, formed in the Caribbean, <a href="https://www.nbcnews.com/weather/hurricanes/tropical-storm-rafael-forms-expected-hurricane-rcna178632">according</a> to NBC.
The storm passed by Jamaica on Tuesday. It is expected to strengthen into a hurricane on Tuesday near the Cayman Islands and pass over Western Cuba. From there, it will likely weaken into a tropical storm before making landfall near New Orleans. The path may change drastically before impacting the U.S.
The heaviest rain of up to 10 inches is expected in Jamaica.
Market Impacts: With a projected path in the Gulf of Mexico, Rafael could disrupt offshore oil and gas production, which could impact companies operating there.
Potentially affected stocks include major energy companies like Exxon Mobil Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>), Chevron Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>), and Occidental Petroleum Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>), and ETFs like SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) and Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>).
Storms in the Gulf of Mexico can also disrupt refining operations, which could impact refiners such as Marathon Petroleum Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPC#NYSE">MPC</a>), Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) and Valero Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>).
Construction companies like Vulcan Materials Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VMC#NYSE">VMC</a>) and Martin Marietta Materials Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MLM#NYSE">MLM</a>) might benefit from increased demand for repairs and rebuilding.
Recent extreme weather activity is linked to climate change. Hurricanes, which will become even more frequent over time, may encourage homeowners to purchase home generators. Generac Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GNRC#NYSE">GNRC</a>) is the largest producer of home generators in the U.S.
Also Read:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41746843/bond-market-fear-gauge-soars-to-1-year-high-ahead-of-us-election-results-bond-vigil">Bond Market Fear Gauge Soars To 1-Year High Ahead Of US Election Results: &#8216;Bond Vigilantes Have Been Voting Early&#8217;</a></li>
</ul>
Photo: Tropical Storm Rafael, 11.5.2024. Courtesy NOAA/Public Domain

Equities

GNRC

Tropical Storm Rafael Could Make US Landfall: 11 Stocks, ETFs To Watch

Oil prices kicked off the week with a notable rally, driven by OPEC+'s decision to postpone an anticipated production increase ahead of the <a href="https://www.benzinga.com/topic/2024-election">imminent U.S. presidential elections. </a>
The oil cartel and its allies, including Russia, opted to delay plans to ramp up output by another month, citing ongoing market weakness and sluggish demand.
On Monday, West Texas Intermediate (WTI) crude — as closely tracked by the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) — surged as much as 3% to hit $71.50 per barrel, its highest since Oct. 25, while Brent crude rose 2.7% to reach $75 per barrel.
See Also: <a href="https://www.benzinga.com/news/earnings/24/11/41709016/us-stocks-likely-to-open-in-green-amid-hints-of-tentativeness-on-election-eve-expert-says-brace-for">US Stocks Likely To Open In Green Amid Hints Of Tentativeness On Election Eve: Expert Says Brace For Volatility Ahead Of Fed&#8217;s Rate Decision</a>
These gains effectively erased last week&#8217;s losses, which followed Israel's limited response to Iran — a development that experts said reduced the risk of a broader conflict in the Middle East, providing temporary relief for oil markets.
OPEC+ announced on Sunday that it would maintain its production cut of 2.2 million barrels per day (bpd) through December. 
Originally, the group had planned to increase output by 180,000 bpd in December, but it conditioned this hike on favorable price conditions. 
The next formal meeting of OPEC+ ministers is scheduled for December 1, although the group has the flexibility to convene extraordinary meetings or alter its policies at any time.
<h3 class="wp-block-heading">US Sanctions Policy Could Shape Future Of Oil</h3>
The outcome of the upcoming U.S. presidential election could be crucial for the oil market, particularly with regard to sanctions policies that affect OPEC+ producers like Russia, Iran, and Venezuela. 
&#8220;After plummeting during the first Trump administration, production in Iran and Venezuela has recovered under President Joe Biden, with the focus of sanctions moving to Russia,&#8221; wrote S&amp;P Global. 
Combined, Iran and Venezuela pumped 4.15 million bpd in September, up from 3.2 million bpd in February 2022, according to Platts' OPEC+ Survey by Commodity Insights, as both countries are exempt from quotas under the OPEC+ agreement, allowing them to pump as much as they can. 
Sanctions policy is expected to remain a key factor influencing the global oil supply, particularly amid ongoing geopolitical tensions in Ukraine and the Middle East.
The Biden-Harris administration has imposed extensive sanctions on Russia, aiming to weaken its military capabilities and hinder its economic resources that support the ongoing war in Ukraine. These sanctions, coordinated with allies like the G7 and EU, target key areas, including Russia&#8217;s defense sector, critical supply chains, and financial networks.
However, Jim Burkhard, vice president of research at S&amp;P Global Commodity Insights, suggested that a second Donald Trump administration might be more inclined to <a href="https://www.benzinga.com/news/24/10/41303548/kremlin-critic-warns-russia-could-grow-stronger-if-trump-wins-white-house-will-basically-be-handing">loosen sanctions on Russia</a>. 
Both parties are likely to maintain pressure on Iran given its ongoing conflict with Israel.
<h3 class="wp-block-heading">US Energy ETFs To Watch Amid Rising Oil Prices</h3>
The surge in oil prices could buoy U.S. energy stocks, particularly those tied to exploration, production, and refining. Here are five key U.S. energy ETFs that may see gains as crude prices continue their upward trend:
<ul>
<li>Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), which had already risen by 1% during premarket trading in New York on Monday</li>
<li>SPDR S&amp;P Oil &amp; Gas Explor. &amp; Product ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>)</li>
<li>Invesco Oil &amp; Gas Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXJ#NYSE">PXJ</a>)</li>
<li>VanEck Oil Refiners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRAK#NYSE">CRAK</a>)</li>
<li>EA Series Trust Strive U.S. Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRLL#NYSE">DRLL</a>)</li>
</ul>
Now Read:
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<li><a href="https://www.benzinga.com/news/earnings/24/11/41709016/us-stocks-likely-to-open-in-green-amid-hints-of-tentativeness-on-election-eve-expert-says-brace-for">US Stocks Likely To Open In Green Amid Hints Of Tentativeness On Election Eve: Expert Says Brace For Volatility Ahead Of Fed&#8217;s Rate Decision</a></li>
</ul>
Image: Shutterstock

Macro Economic Events

CRAK

DRLL

PowerShares Exchange-Traded Fund Trust Dynamic Oil Services Portfolio

Oil Prices Spike By Over 3% As OPEC+ Delays Production Increases Ahead Of US Elections: 5 Energy ETFs To Watch Monday

Crude oil prices plummeted over 6% on Monday, approaching levels not seen since early October, as investors processed news of targeted <a href="https://www.benzinga.com/news/24/10/41567809/oil-etfs-plunge-premarket-after-israels-strikes-on-iran">Israeli airstrikes in Iran</a>.
U.S. energy stocks followed suit during premarket trading in New York, with sector ETFs posting sharp losses at the start of the week. 
Contracts on West Texas Intermediate (WTI) light crude, as tracked by the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), fell over 6% to around $67 per barrel on Monday morning, marking what could be the worst one-day drop since July 2022.
The sell-off followed Israeli airstrikes over the weekend that targeted military facilities in Iran but spared the country's oil infrastructure.
According to the Israel Defense Forces, the strikes were "targeted and precise," focusing on Iranian missile production and air defense installations. 
This measured response likely averted a deeper crisis in the oil market, as analysts warned that a broader assault on Iran's energy sector could have risked up to 1.7 million barrels per day (bpd) of Iranian crude exports and led to further regional destabilization. 
U.S. President Joe Biden had cautioned Israel against actions that would directly impact Iran's oil output, warning that such moves could prompt Tehran to retaliate by targeting oil shipping routes in the Middle East.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="503" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28085347/image-274-1024x503.png" alt="" class="wp-image-617043" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28085347/image-274-1024x503.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28085347/image-274-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28085347/image-274-768x377.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28085347/image-274-1536x754.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28085347/image-274.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Analysts Expect Oil Prices To Remain Under Pressure</h3>
Goldman Sachs analysts had previously estimated that a sustained 1 million bpd disruption to Iranian oil supply could have pushed Brent prices up by $10–$20 per barrel. 
With no immediate threat to Iran's oil exports, the bank's forecast for Brent reaching the mid-$80s by late 2025 now appears overly optimistic compared to the consensus view.
The restrained nature of Israel's actions has led some analysts to predict that oil prices will remain subdued, especially in light of broader market dynamics. 
Warren Patterson, head of commodity strategy at ING Group, highlighted that Israel's focused response leaves "the door open for de-escalation," which seems to be reflected in Monday&#8217;s price action.
"If we do see some de-escalation, it would allow fundamentals to dictate price direction once again," Patterson explained, adding that a projected market surplus in 2025 &#8220;would mean that oil prices are&nbsp;likely to remain under pressure.&#8221;
Ole Hansen, head of commodity strategy at Saxo Bank, indicated that crude prices have now retraced most of the gains made in early October, which were fueled by Chinese economic stimulus and concerns over potential disruptions to Iran's supply. Hansen pointed out that "sluggish demand" and the impending reintroduction of OPEC+ barrels could further weigh on oil prices.
<h3 class="wp-block-heading">China's Declining Demand, OPEC+ Production Decisions Add To Bearish Sentiment</h3>
On the demand side, Chinese consumption—accounting for roughly 15% of global oil demand—has been trending downward since May 2024
According to Pascal Devaux, an economist at BNP Paribas, this decline is tied not only to China's economic slowdown but also to structural changes within its energy sector. "Around 45% of new car registrations in China are for electric vehicles, either battery-powered or hybrid," Devaux said, underscoring the impact of the country's low-carbon transition on oil demand.
Capital Economics forecasts that if OPEC+ follows through on its plan to unwind voluntary production cuts initiated in October, an increase in oil supply combined with weak demand growth could drive prices lower throughout the remainder of 2024 and into 2025.
<h3 class="wp-block-heading">US Energy Stocks See Sharp Losses</h3>
Sector ETFs posted notable declines in early trading:
<ul>
<li>The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), which tracks large-cap U.S. energy companies, was down 2.3% at the start of Monday's session. APA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>), Diamondback Energy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>), and Marathon Oil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRO#NYSE">MRO</a>) all registered losses between 3% and 4%.</li>
</ul>
<ul>
<li>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>), a broader measure of exploration and production stocks, slid 2.8%. Kosmos Energy Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KOS#NYSE">KOS</a>) and Vital Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTLE#NYSE">VTLE</a>) are both down 4%.</li>
</ul>
<ul>
<li>VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) dropped 1.7%. Companies like ProPetro Holding Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PUMP#NYSE">PUMP</a>), Liberty Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LBRT#NYSE">LBRT</a>), and Noble Corporation plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NE#NYSE">NE</a>) were hit particularly hard, each falling by about 4%.</li>
</ul>
Read Next:
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<li><a href="https://www.benzinga.com/news/24/10/41571526/exxon-shell-warren-buffett-backed-occidental-petroleum-and-other-oil-stocks-tumble-in-premarket-afte">Exxon, Shell, Warren Buffett-Backed Occidental Petroleum And Other Oil Stocks Tumble In Premarket After Israel&#8217;s Strikes On Iran</a></li>
</ul>
Image: Shutterstock

Analyst Color

Asia

Emerging Markets

Specialty ETFs

FANG

LBRT

PUMP

VTLE

Crude Oil Faces Steepest One-Day Drop In Over Two Years, Energy Stocks Plunge: Prices 'Are Likely To Remain Under Pressure,' Analyst Says

Oil-based exchange-traded funds (ETFs) experienced a significant decline, dropping over 4%, following Israel&#8217;s recent military strikes on Iran. The strikes, which occurred over the weekend, were reported as &#8220;limited&#8221; by local media, leading analysts to downplay the potential impact on oil supplies.
What Happened: Israel&#8217;s military targeted Iranian sites in three provinces on Saturday in response to a ballistic missile attack by Tehran on October 1. According to the Iranian news agency Tasnim, the strikes resulted in the deaths of four soldiers and caused &#8220;limited damages,&#8221; sparing oil, nuclear, and civilian infrastructure. Post the strikes, oil prices saw a sharp decline of more than 4% on Monday, CNBC <a href="https://www.cnbc.com/2024/10/28/oil-slides-over-4percent-as-israels-attack-on-iran-unlikely-to-disrupt-supplies.html">reported</a> on Monday. I
See Also: <a href="https://www.benzinga.com/markets/equities/24/10/41538660/tesla-nvidia-led-market-rally-now-pressures-investment-funds-to-offload-shares-to-avoid-us-tax-l?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tesla, Nvidia-Led Market Rally Now Pressures Investment Funds To Offload Shares To Avoid US Tax Lawsuits</a>
Following the attacks, several oil ETFs recorded notable losses.
During pre-market hours on Monday, ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) fell by 8.41%, United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) dropped 4.69%, SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) decreased by 1.81%, and MicroSectorsTM Oil &amp; Gas Exploration &amp; Production 3X Leveraged ETNs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILU#NYSE">OILU</a>) saw a 4.54% drop, according to <a href="https://pro.benzinga.com">Benzinga Pro</a>.
Despite the tensions, Iran&#8217;s oil industry remains unaffected, with operations continuing as usual. Iran is responsible for up to 4% of the global oil supply, as per the U.S. Energy Information Administration. The attack comes after an Iran-backed Hamas assault on Israel on Oct. 7 last year.
Why It Matters: The recent strikes add to the ongoing geopolitical tensions that have kept energy markets on edge. Earlier this month, oil prices had already dipped by 2% after OPEC reduced its<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41320277/oil-prices-drop-2-as-opec-cuts-forecast-irans-output-rises-analyst-says-netanyahu-m"> global oil demand growth forecast</a> for the third consecutive month. This was due to actual consumption data and slightly lowered demand expectations.
Experts had warned that an Israeli attack on Iranian oil facilities could significantly disrupt global oil prices. John Driscoll, chief strategist at JTD Energy Services, highlighted the potential for <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41309234/israels-attack-on-iran-would-rattle-the-nerves-of-oil-market-says-expert">such actions to unsettle the market</a>, drawing parallels to past incidents like the 2019 drone attacks on Saudi oil fields.
Although Iran&#8217;s oil production is lower due to sanctions, any disruption could still lead to a price increase.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/24/10/41561645/trumps-rising-election-odds-sends-emerging-markets-into-tailspin-causes-biggest-stock-drop-in-10-mon?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump&#8217;s Rising Election Odds Sends Emerging Markets Into Tailspin, Causes Biggest Stock Drop In 10 Months</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Photo by William Potter on Shutterstock

Pre-Market Outlook

Oil ETFs Plunge Premarket After Israel's Strikes On Iran

Oil prices took a sharp dive on Tuesday, tumbling over 5% in morning trading in New York, as geopolitical tensions in the Middle East slightly eased after Israeli Prime Minister Benjamin Netanyahu reportedly pledged that Iran's crude oil infrastructure would be spared from <a href="https://www.benzinga.com/news/24/10/41321699/oil-prices-drop-after-netanyahu-says-israel-will-attack-military-not-oil-or-nuclear-targets-in-iran">any potential retaliatory strikes. </a>
West Texas Intermediate (WTI) crude, the U.S. benchmark, tracked by the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), nosedived to $70 per barrel, down more than 5% as of 10 a.m. ET. This marks the steepest one-day decline in over a year.
The selloff followed a Monday report from The Washington Post that said that Netanyahu assured the Biden administration that Israel would avoid targeting Iranian oil and nuclear facilities in any retaliatory military actions.
The assurance suggested a narrower scope of potential conflict, reducing fears of widespread supply shocks in the global oil market.
Market analysts had previously warned that an Israeli strike on Iran&#8217;s oil infrastructure could send crude prices skyrocketing by $20 per barrel, highlighting concerns that Tehran would retaliate by attacking oil installations throughout the Gulf region, potentially triggering a broader energy crisis.
<h3 class="wp-block-heading">Crude Suffers Worst Drop In Over 1 Year As Middle East Supply Fears Recede</h3>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="469" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-1024x469.png" alt="" class="wp-image-596308" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-1024x469.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-300x137.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-768x351.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-1536x703.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118.png 1884w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Image: <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent101524&amp;t=be2bearmibe3na1">Benzinga Pro</a></figcaption></figure>
<h3 class="wp-block-heading">Energy Sector Tanks: US Oil Giants Lead Declines</h3>
The immediate reaction in the markets was swift: U.S. energy stocks plunged, while airlines and cruise lines — typically sensitive to fuel prices — enjoyed a sharp relief rally.
The energy sector was one of the biggest losers on the day. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), which tracks major U.S. energy companies, slid 2.8%, setting up for its worst day since late April. 
АРА Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>), Diamondback Energy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) and Valero Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>) were the worst performers within the XLE ETF, with declines of about 4%.
Companies involved in upstream exploration and production were hit even harder, with the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) falling 3.1%. Talos Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TALO#NYSE">TALO</a>), Kosmos Energy Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KOS#NYSE">KOS</a>) and Crescent Energy Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRGY#NYSE">CRGY</a>) each tumbled by over 4%. 
Downstream oil service providers also struggled, with the VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) dropping 3.6%. Major oilfield services companies like Schlumberger N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>) and Halliburton Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAL#NYSE">HAL</a>) both fell about 3%, while Transocean Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIG#NYSE">RIG</a>) underperformed, down 5%. 
<h3 class="wp-block-heading">Airlines And Cruise Lines Rally: Lower Fuel Costs, Strong Earnings Expectations Lift Sentiment</h3>
While energy stocks suffered, sectors reliant on cheaper fuel prices thrived. Airlines and cruise lines, in particular, were among the best performers within the S&amp;P 500 as the prospect of lower oil prices offered some relief.
Norwegian Cruise Line Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NCLH#NYSE">NCLH</a>) surged 4.3%, while Carnival Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>) jumped 5.3%. 
Goldman Sachs recently raised its price target on Royal Caribbean Cruises Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RCL#NYSE">RCL</a>) from $195 to $220, anticipating strong earnings momentum. Similarly, NCLH saw its price target lifted from $22 to $24.
In the airline space, American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>) rallied 3.5%, United Airlines Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>) gained 1.2%, reaching its highest level since February 2020, and Southwest Airlines Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) rose 1.3%.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41331839/financial-sector-hits-record-highs-as-goldman-sachs-bank-of-america-citi-beat-q3-ea">Financial Sector Hits Record Highs As Goldman Sachs, Bank of America, Citi Beat Q3 Earnings Expectations</a></li>
</ul>
Photo via Shutterstock.

Movers

CRGY

NCLH

TALO

Oil Prices Take Largest Plunge In Over A Year As Israel Vows To Spare Iranian Facilities: Energy Stocks Sink, Airlines, Cruise Lines Rally

Oil is trading more than 5% higher Thursday on the heels of President Joe Biden&#8216;s statement that the U.S. spoke with Israel about a possible attack on Iran's oil facilities.
"We're in discussions about that,&#8221; Biden said during an interaction with reporters. 
Biden seemingly indicated he wasn&#8217;t partial to the idea of striking at Iran&#8217;s oil facilities, before cutting himself off: &#8220;I think that would be a little&#8230; anyway.&#8221; See video below.
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When one reporter asked whether Biden would &#8220;allow&#8221; Israel to retaliate against Iran, Biden swiftly corrected him: &#8220;First of all, we don&#8217;t &#8216;allow&#8217; Israel. We advise Israel.&#8221;
<a href="https://www.benzinga.com/news/23/10/35136071/israel-under-siege-unprecedented-hamas-attack-sparks-intense-clashes-netanyahu-says-we-are-at-war">Since Oct. 7, 2023</a>, Israel has been fighting Hamas in Gaza as well as Hezbollah in Lebanon. Both groups are considered terrorist organizations by the U.S. 
See Also: <a href="https://www.benzinga.com/news/24/10/41134015/jd-vance-tim-walz-debate-sets-a-different-tone-candidates-discuss-israel-iran-escalation-immigration">JD Vance, Tim Walz Debate Sets A Different Tone, Candidates Discuss Israel-Iran Escalation</a>
<h3 class="wp-block-heading">Oil And The Israel-Iran Conflict</h3>
Iran is the seventh-largest oil producer in the world. The country, which backs the Hezbollah militant group, exports around half its production abroad. 
China, where <a href="https://www.benzinga.com/markets/asia/24/08/40596334/asia-markets-mixed-europe-gains-crude-oil-falls-on-chinese-demand-concerns-global-markets-today-whil">oil demand is weak</a>, is its main customer.
Since Iran's <a href="https://www.benzinga.com/news/global/24/10/41126038/iran-attacks-israel-with-missiles-middle-east-tensions-escalates-s-p-500-stocks-bitcoin-fall-as-oil">missile attack on Israel</a> on Monday, the price of barrels has fluctuated. As of Oct. 3, the price of West Texas Intermediate (WTI) crude oil is $73.83 per barrel. This reflects a 5.32% increase from the previous day&#8217;s close of $70.10.
The price of Brent crude is approximately $77.76 per barrel. It has fluctuated within a range of $74.33 to $77.58 for the day.
The U.S., which is producing more oil under Biden than any other U.S. presidential administration, has been filling its reserves. The Biden administration acquired an additional <a href="https://www.benzinga.com/markets/eurozone/24/10/41146905/geopolitical-risks-may-be-biggest-threat-to-markets-boe-says">6 million barrels of crude</a> just this week.
It&#8217;s worth noting that ongoing violence in the Middle East puts the Straits of Hormuz at risk. A third of tanker traffic and a fifth of LNG frozen gas is transported through that passageway. 
The U.S. and its allies are likely determined to keep the Strait open due to its strategic importance. Any attempt to block the Strait could provoke military intervention.
Iran controls much of the northern coastline of the Strait and has previously threatened to block the passage in response to sanctions or conflicts with Western countries. 
<h3 class="wp-block-heading">Market Reaction</h3>
So far, market reaction to the Middle East conflict is relatively mute compared to February 2022 when Russia invaded Ukraine.
At the time, the oil market reacted with significant volatility and disruption, leading to a sharp rise in global prices. 
Brent crude, the global benchmark, surged above $100 per barrel for the first time since 2014, and by March 2022, it had briefly spiked to $139 per barrel, near the all-time high.
Oil-related exchange-traded funds, or ETFs, were trending up at last check Thursday afternoon. Here&#8217;s where they stand: 
<ul>
<li>United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) is up 4.05% to $75.71</li>
<li>Invesco DB Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBO#NYSE">DBO</a>) is up 4.08% at $15.06</li>
<li>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) is up 3.1% at $139.56</li>
<li>Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) up 1.65% at $92.22</li>
<li>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) is up 6.59% at $28.81</li>
<li>VanEck Vectors Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) is up 1.89% at $297.58</li>
</ul>
Now Read: 
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/previews/24/10/41170128/jobs-report-preview-could-september-labor-data-shift-feds-interest-rate-path">Jobs Report Preview: Could September Labor Data Shift Fed&#8217;s Interest Rate Path?</a></li>
</ul>
Image: Shutterstock

Oil Prices Rally: Biden Confirms US 'Discussions' With Israel About Striking Iran Facilities

The Federal Reserve is set to sprinkle some interest rate fairy dust, and small-cap sectors are lining up to see who'll soar or stumble. While the Russell 2000 is stealing the spotlight with its 5% surge ahead of the rate cut, not all small caps will feel the same love from <a href="https://www.benzinga.com/trading-ideas/small-cap-analysis">lower borrowing costs</a>. 
So, what sectors should investors be eyeing, and where do the best ETFs come into play?
<h2 class="wp-block-heading">Financials: Money Talks, But Who's Listening?</h2>
Small-cap financials, often living and breathing on rate-sensitive margins, are gearing up for a potential win. 
As borrowing costs fall, these lenders, insurers, and regional banks get a shot in the arm. For those looking to ride the wave, the iShares Russell 2000 Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWFN#NYSE">IWFN</a>) offers concentrated exposure to this potentially booming sector.
<h2 class="wp-block-heading">Real Estate: Open House For Gains?</h2>
Real estate stocks also stand to benefit as mortgage rates and financing costs drop. With rate cuts loosening the borrowing purse strings, real estate could experience a boost in demand and valuation. 
Investors eyeing the space might find the Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) or iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>) perfect for capturing the sector's expected rise.
Don&#8217;t miss out on this unparalleled opportunity:
<ul>
<li><a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Register now to secure your spot at Benzinga&#8217;s Largest SmallCap Conference ever in Chicago!</a></li>
</ul>
<h2 class="wp-block-heading">Consumer Discretionary: Retail Therapy Ahead?</h2>
Lower interest rates also often mean more cash for consumers to splurge on non-essentials, giving a lift to small-cap retail, travel, and leisure names.
The SPDR S&amp;P 600 Small Cap Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSCD#NYSE">PSCD</a>) is one way to jump on this sector's shopping spree.
<h2 class="wp-block-heading">Energy: A Wildcard In The Small-Cap Mix</h2>
Energy stocks are notorious for being tied to oil prices, but lower rates can still offer some breathing room for these debt-heavy companies. 
For those ready to hedge their bets, the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) could be the small-cap energy ETF to watch.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40749609/this-small-cap-top-pick-is-positioned-for-strong-gains-jpmorgan-sees-over-50-upside">This Small Cap &#8216;Top Pick&#8217; Is Positioned For Strong Gains, JPMorgan Sees Over 50% Upside</a>
<h2 class="wp-block-heading">Technology, Healthcare: Resilient But&#8230; Rate-Resistant?</h2>
While technology and healthcare sectors aren't as rate-sensitive as financials or real estate, they remain staples in small-cap ETFs like the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) and Vanguard Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>). 
Both funds are solid all-around plays for investors who want diversified exposure to the small-cap space, especially as uncertainty lingers.
As the Fed moves its rate-cutting wand, small-cap sectors will each feel the ripples differently. 
Whether you're banking on financials, betting on real estate, or shopping for consumer discretionary, there's a sector—and ETF—for every investor's playbook.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/09/40777734/exclusive-small-caps-at-most-attractive-relative-valuations-since-1990s-says-russell-inv" target="_blank" rel="noreferrer noopener">EXCLUSIVE: Small Caps At &#8216;Most Attractive Relative Valuations&#8217; Since 1990s, Says Russell Investments&#8217; Paul Eitelman</a></li>
</ul>
Don&#8217;t miss the opportunity to dominate in a volatile market at the&nbsp;<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference on Oct. 9-10, 2024</a>,&nbsp;at the Chicago Marriott Downtown Magnificent Mile.
Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders.
<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Secure your spot and get your tickets today!</a>
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