AREC - Energy stocks rise oil falls only modestly after planned reserves release

The S&P 500 energy sector (NYSEARCA:XLE) jumped 3.2% for the week even as crude oil futures fell, as several countries joined the U.S. in releasing crude reserves. WTI crude for May delivery (CL1:COM) closed the week -1% at $98.26/bbl, a modest move in light of the commitment by member nations of the International Energy Agency to release tens of millions of barrels from their strategic reserves. Analysts say the unprecedented oil releases, expected to total 240M barrels, will depress prices in the short term but support them at a later point when the countries are forced to buy back oil to refill their stockpiles. "The sentiment-driven selloff [in oil] will give way, and fundamentals will reassert themselves, especially as more market participants start fretting about how the U.S. administration will replenish the SPR drawdown," SPI Asset Management said, according to the Wall Street Journal. "There's some concern that by artificially

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Energy stocks rise, oil falls only modestly after planned reserves release