Russia's oil production still below pre-Covid level

Russia is the second largest global oil producer after Saudi Arabia. Russia's oil production still hasn't recovered to pre-pandemic levels after its steep drop in 2020. It's no secret that demand for oil, as part of the global recovery, is strong. So strong that ramping up production is proving difficult, even for OPEC+'s biggest producers.

Russia's combined crude and condensate production

Within the OPEC+ cartel, only Saudi Arabia and the UAE have the capacity to ramp up production to pre-Covid levels. Whereas, Russia is expected to only be able to meet half of its expected output over the next six months. For investors, economists and even the Biden administration, that's a problem. It means less relative supply in the face of ongoing demand. In other words, higher oil prices are inevitable, which could further eat into disposable consumer income and ultimately company earnings. 

Buying oil stocks, selling solar is seen as winning trade

Owning U.S. oil and gas producers and betting against solar companies looks like “the ultimate contrarian trade” to Jonathan Krinsky, Bay Crest Partners LLC’s chief market technician. Krinsky suggested the stock trade in a report Thursday, based on a comparison between the S&P 500 Energy Index and the MAC Global Solar Energy Index. The ratio between the industry gauges closed Wednesday at the lowest level since October 2008, according to data compiled by Bloomberg. Wednesday’s reading was 90% below a peak reached two years ago, and Krinsky wrote that he sees the potential for a “sharp snapback.

U.S. energy stocks weakest since the Great Depression

U.S. energy stocks are weaker than they have been since the Great Depression, according to Michael Hartnett, Bank of America Corp.’s global chief investment strategist. 

Hartnett cited a ratio between oil and gas shares and the S&P 500 Index in a report Thursday. 

The comparison was based on the S&P 500 Energy Index, calculated since 1990, and an earlier industry gauge from Global Financial Data. S&P’s index set a record low relative to the S&P 500 on March 18 after plummeting 85% from a record in July 2008. 

Investors who go against their peers “would buy some U.S. oil stocks,” he wrote.

ETF Composition - XES - Oil & Gas Equipment & Services

Fund Name: SPDR® S&P® Oil & Gas Equipment & Services ETF
Ticker Symbol: XES

• charts below
• (source)  (37; 01/11/2018) (day's change) (change from open) (by vol) : https://finviz.com/screener.ashx?v=211&t=NE,NBR,ESV,OIS,FTI,WFT,DRQ,FMSA,OII,RIG,DO,SLB,HAL,HP,BHGE,RDC,SPN,NOV,CLB,SLCA,PTEN,PUMP,CJ,RES,MDR,HLX,FRAC,FET,UNT,FI,BAS,BRS,MTRX,NR,EXTN,CKH,AROC,TTI&ta=0&o=-volume

	Name	Ticker	% of net assets
1	Noble Corporation plc	NE	3.75
2	Nabors Industries Ltd.	NBR	3.63
3	Ensco plc Class A	ESV	3.58
4	Oil States International Inc.	OIS	3.54
5	TechnipFMC Plc	FTI	3.40
6	Weatherford International plc	WFT	3.39
7	Dril-Quip Inc.	DRQ	3.38
8	Fairmount Santrol Holdings Inc.	FMSA	3.37
9	Oceaneering International Inc.	OII	3.35
10	Transocean Ltd.	RIG	3.35
11	Diamond Offshore Drilling Inc.	DO	3.32
12	Schlumberger NV	SLB	3.32
13	Halliburton Company	HAL	3.32
14	Helmerich & Payne Inc.	HP	3.30
15	Baker Hughes a GE Company Class A	BHGE	3.30
16	Rowan Cos. Plc Class A	RDC	3.28
17	Superior Energy Services Inc.	SPN	3.26
18	National Oilwell Varco Inc.	NOV	3.26
19	Core Laboratories NV	CLB	3.22
20	U.S. Silica Holdings Inc.	SLCA	3.14
21	Patterson-UTI Energy Inc.	PTEN	3.13
22	ProPetro Holding Corp.	PUMP	3.12
23	C&J Energy Services Inc.	CJ	3.10
24	RPC Inc.	RES	2.84
25	McDermott International Inc.	MDR	2.56
26	Helix Energy Solutions Group Inc.	HLX	2.32
27	Keane Group Inc.	FRAC	2.27
28	Forum Energy Technologies Inc.	FET	2.10
29	Unit Corporation	UNT	1.75
30	Frank's International NV	FI	1.65
31	Basic Energy Services Inc.	BAS	1.61
32	Bristow Group Inc.	BRS	1.36
33	Matrix Service Company	MTRX	0.89
34	Newpark Resources Inc.	NR	0.86
35	Exterran Corp.	EXTN	0.85
36	SEACOR Holdings Inc.	CKH	0.78
37	Archrock Inc.	AROC	0.77
38	TETRA Technologies Inc.	TTI	0.52

                        

ETF Composition - XOP - Oil & Gas Exploration & Prod. (SPDR S&P)

Fund Name: SPDR® S&P® Oil & Gas Exploration & Production ETF
Ticker Symbol: XOP

• charts below
• (source)  (68; 12/26/17) (day's change) (change from open) (by vol) : https://finviz.com/screener.ashx?v=211&t=PE,PDCE,FANG,MRO,HFC,CPE,APC,PXD,RSPP,MUR,DVN,CLR,CXO,WPX,COP,CRZO,XEC,NFX,NBL,EOG,EGN,OXY,APA,PBF,CHK,CVX,VLO,HES,QEP,MPC,RRC,AR,XOM,CNX,PSX,ANDV,GPOR,SM,WLL,COG,EQT,SWN,MTDR,LPI,OAS,CDEV,DK,SRCI,XOG,REN,HK,CRC,GPRE,UPL,INT,SN,CVI,KOS,JAG,DNR,BBG,PARR,SGY,REI,TELL,REGI,REX,SD&ta=0&o=-volume

	Name	Ticker	% of net assets	Sector
1	Parsley Energy Inc. Class A	PE	2.08	Oil & Gas Exploration & Production
2	PDC Energy Inc	PDCE	2.07	Oil & Gas Exploration & Production
3	Diamondback Energy Inc.	FANG	2.06	Oil & Gas Exploration & Production
4	Marathon Oil Corporation	MRO	2.05	Oil & Gas Exploration & Production
5	HollyFrontier Corporation	HFC	2.03	Oil & Gas Refining & Marketing
6	Callon Petroleum Company	CPE	2.03	Oil & Gas Exploration & Production
7	Anadarko Petroleum Corporation	APC	2.03	Oil & Gas Exploration & Production
8	Pioneer Natural Resources Company	PXD	2.01	Oil & Gas Exploration & Production
9	RSP Permian Inc.	RSPP	2.01	Oil & Gas Exploration & Production
10	Murphy Oil Corporation	MUR	2.01	Oil & Gas Exploration & Production
11	Devon Energy Corporation	DVN	2.00	Oil & Gas Exploration & Production
12	Continental Resources Inc.	CLR	1.99	Oil & Gas Exploration & Production
13	Concho Resources Inc.	CXO	1.99	Oil & Gas Exploration & Production
14	WPX Energy Inc. Class A	WPX	1.97	Oil & Gas Exploration & Production
15	ConocoPhillips	COP	1.97	Oil & Gas Exploration & Production
16	Carrizo Oil & Gas Inc.	CRZO	1.97	Oil & Gas Exploration & Production
17	Cimarex Energy Co.	XEC	1.97	Oil & Gas Exploration & Production
18	Newfield Exploration Company	NFX	1.96	Oil & Gas Exploration & Production
19	Noble Energy Inc.	NBL	1.96	Oil & Gas Exploration & Production
20	EOG Resources Inc.	EOG	1.96	Oil & Gas Exploration & Production
21	Energen Corporation	EGN	1.95	Oil & Gas Exploration & Production
22	Occidental Petroleum Corporation	OXY	1.94	Integrated Oil & Gas
23	Apache Corporation	APA	1.93	Oil & Gas Exploration & Production
24	PBF Energy Inc. Class A	PBF	1.92	Oil & Gas Refining & Marketing
25	Chesapeake Energy Corporation	CHK	1.92	Oil & Gas Exploration & Production
26	Chevron Corporation	CVX	1.91	Integrated Oil & Gas
27	Valero Energy Corporation	VLO	1.91	Oil & Gas Refining & Marketing
28	Hess Corporation	HES	1.90	Oil & Gas Exploration & Production
29	QEP Resources Inc.	QEP	1.89	Oil & Gas Exploration & Production
30	Marathon Petroleum Corporation	MPC	1.88	Oil & Gas Refining & Marketing
31	Range Resources Corporation	RRC	1.88	Oil & Gas Exploration & Production
32	Antero Resources Corporation	AR	1.87	Oil & Gas Exploration & Production
33	Exxon Mobil Corporation	XOM	1.86	Integrated Oil & Gas
34	CNX Resources Corporation	CNX	1.86	Oil & Gas Exploration & Production
35	Phillips 66	PSX	1.86	Oil & Gas Refining & Marketing
36	Andeavor	ANDV	1.85	Oil & Gas Refining & Marketing
37	Gulfport Energy Corporation	GPOR	1.84	Oil & Gas Exploration & Production
38	SM Energy Company	SM	1.84	Oil & Gas Exploration & Production
39	Whiting Petroleum Corporation	WLL	1.83	Oil & Gas Exploration & Production
40	Cabot Oil & Gas Corporation	COG	1.82	Oil & Gas Exploration & Production
41	EQT Corporation	EQT	1.78	Oil & Gas Exploration & Production
42	Southwestern Energy Company	SWN	1.78	Oil & Gas Exploration & Production
43	Matador Resources Company	MTDR	1.59	Oil & Gas Exploration & Production
44	Laredo Petroleum Inc.	LPI	1.56	Oil & Gas Exploration & Production
45	Oasis Petroleum Inc.	OAS	1.47	Oil & Gas Exploration & Production
46	Centennial Resource Development Inc.	CDEV	1.42	Oil & Gas Exploration & Production
47	Delek US Holdings Inc	DK	1.18	Oil & Gas Refining & Marketing
48	SRC Energy Inc	SRCI	1.02	Oil & Gas Exploration & Production
49	Extraction Oil & Gas Inc.	XOG	0.93	Oil & Gas Exploration & Production
50	Resolute Energy Corporation	REN	0.92	Oil & Gas Exploration & Production
51	Halcon Resources Corp	HK	0.83	Oil & Gas Exploration & Production
52	California Resources Corp	CRC	0.78	Oil & Gas Exploration & Production
53	Green Plains Inc.	GPRE	0.77	Oil & Gas Refining & Marketing
54	Ultra Petroleum Corp.	UPL	0.75	Oil & Gas Exploration & Production
55	World Fuel Services Corporation	INT	0.69	Oil & Gas Refining & Marketing
56	Sanchez Energy Corporation	SN	0.69	Oil & Gas Exploration & Production
57	CVR Energy Inc.	CVI	0.66	Oil & Gas Refining & Marketing
58	Kosmos Energy Ltd.	KOS	0.65	Oil & Gas Exploration & Production
59	Jagged Peak Energy Inc.	JAG	0.58	Oil & Gas Exploration & Production
60	Denbury Resources Inc.	DNR	0.43	Oil & Gas Exploration & Production
61	Bill Barrett Corporation	BBG	0.30	Oil & Gas Exploration & Production
62	Par Pacific Holdings Inc	PARR	0.30	Oil & Gas Refining & Marketing
63	Stone Energy Corporation	SGY	0.25	Oil & Gas Exploration & Production
64	Ring Energy Inc.	REI	0.20	Oil & Gas Exploration & Production
65	Tellurian Inc.	TELL	0.18	Oil & Gas Exploration & Production
66	Renewable Energy Group Inc.	REGI	0.18	Oil & Gas Refining & Marketing
67	REX American Resources Corporation	REX	0.16	Oil & Gas Refining & Marketing
68	SandRidge Energy Inc.	SD	0.14	Oil & Gas Exploration & Production

By average volume:
                                
             

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