The Energy Select Sector SPDR Fund (XLE) is up by more than 1.6% so far today as the West Texas Intermediate and the Brent crude oil continue their upward movement.
The Energy Select Sector SPDR (XLE) is performing excellently on the back of energy stocks currently rallying the market.
The Energy Select Sector SPDR Fund (XLE) is having an excellent start to the market this week. The ETF opened the day trading at $58.64 and is now up by more than 1.6% to currently trade at $58.88. The rally comes as the broader energy sector experiences a fine start to the week.
At the time of writing, the United States Oil Fund (USO) is up by 0.50%, while the United States Natural Gas Fund (UNG) has surged by more than 6% since the market opened. The rally by energy stocks and funds comes as the West Texas Intermediate crude oil rose by $1.05 at $84.81 per barrel at the New York Mercantile Exchange. The WTI has managed to stay above the $80 level for the past few trading sessions, signaling its best performance in nearly seven years.
Furthermore, the global benchmark Brent crude gained $0.73 to $86.26 per barrel, indicating higher performance in the energy sector. The natural gas futures were also 29 cents higher at $5.57 per 1 million BTU.
Alliance Resource Partners (ARLP) surged by over 4% as it reported its third-quarter earnings of $0.44 per unit. This is an improvement from the $0.21 per unit it recorded a year earlier. The energy company further said its board approved a cash distribution of $0.20 per unit, surpassing the $0.10 per unit distributed in the last quarter.
The Energy Select Sector SPDR Fund (XLE) has been one of the best performing sector-focused ETFs in the United States over the past year. Year-to-date, the ETF’s value is up by 52.9%, surpassing the other leading sector ETFs including Financial Services (XLF), Technology (XLK), and Real Estate (XLRE).
XLE is also the top performer over the past year. In the past 12 months, the energy sector-focused ETF has gained more than 89% in value, surpassing its competitors in the market.
Hassan is a Nigerian-based financial Journalist and cryptocurrency investor.