NRGU - U.S. crude caps biggest monthly rise since January 2022

2023-07-31 17:30:25 ET

• U.S. crude oil prices climbed to fresh three-month highs Monday and posted their best monthly gains in a year and a half, supported by tightening global supply and rising demand.
• Front-month Nymex crude ( CL1:COM ) for September delivery closed +1.5% Monday and gained 15.8% this month to $81.80/bbl, while September Brent crude ( CO1:COM ) finished +0.6% on the day and added 14.2% for July to $85.56/bbl.
• Both WTI and Brent have enjoyed a string of five straight weekly gains, with WTI turning positive on the year, +1.9% , while Brent is still a bit shy of breakeven, -0.4% .
• ETFs: ( NYSEARCA: USO ), ( BNO ), ( UCO ), ( SCO ), ( DBO ), ( SCO ), ( DRIP ), ( GUSH ), ( USOI ), ( NRGU ), ( XLE ), ( XOP ), ( VDE ), ( OIH ) ( XES ), ( IEZ )
• The strength in crude prices helped lift energy stocks to their best monthly showing since October, +7.7% ; the sector was the comfortable leader on Monday, +2% , also helped by Goldman Sachs' upgrade of Chevron ( NYSE: CVX ), which ended +3% .
• Goldman also upwardly revised its global oil demand forecast for the year while sticking to its 12-month Brent price projection of $93/bbl, as higher realized inventories offset the demand boost from a less pessimistic growth outlook.
• Goldman analysts estimate global oil demand rose to an all-time high of 102.8M bbl/day in July and anticipate solid demand driving a larger than expected 1.8M bbl/day deficit in this year's H2 and a 600K bbl/day deficit in 2024.

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