SLB - Crude oil energy stocks surge again as Saudi UAE flag capacity limits

Energy is the easy leader in the S&P sector standings for the second straight day alongside rising crude oil prices, as Saudi Arabia and the United Arab Emirates are producing near capacity, contrary to claims that the pair are holding back and could raise output. French President Macron reportedly told President Biden on the sidelines of the G7 meeting that the UAE was producing at maximum capacity and Saudi Arabia could increase output by only 150K bbl/day. Analysts also said political unrest in Ecuador and Libya could tighten supply further, while the easing of China's zero-COVID lockdowns would spark demand. Front-month August WTI crude oil (CL1:COM) closed +2% to $111.76/bbl, pushing past its 50-day moving average of 110.27, while August Brent crude (CO1:COM) settled +2.5% at $117.98/bbl. Oil and gas names again dominate the day's top gainers, led by (HES) +5.2%, followed by (OXY) +4.7%, (MRO) +4%, (FANG) +4%, (VLO)

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Crude oil, energy stocks surge again as Saudi, UAE flag capacity limits