Yahoo Finance

Oil really has been slammed following this week's decision from OPEC to increase supply. Also, more talk about trying to end the war in Ukraine and concerns over a full-blown trade war impacting demand. So, today we saw oil dropping, almost a 3% drop off of the lows here, you can see. But nevertheless, Brent also down more than 2%. I do want to show you over the last five days we have seen crude coming down about 5% for both Brent and WTI. This drop is not good for shale producers. One oil veteran telling me, they're not going to be incentivized to produce more if prices plummet. He said if WTI goes below 70 a barrel, it's at 66 right now. Also, deregulating that may incentivize more incremental production, but they're really, now these companies are focused on free cash flows. So they'll gradually produce less if the drop, if the drop goes all the way down, especially to the low 60s. I do want to mention that we are at the lows of the year certainly and we are at a six-month low, and the next drop would be to a multi-year low because we're approaching 2022 lows as well. I want to mention what's been happening to energy related equities because those have been slammed. Uh, XLE today down more than 1 and a half percent, but remember that XLE was a leader back in February. In fact, it was up more than 7%. It was an outperformer among the S&P 500 sectors. If we just take a look at a year-to-date chart now, it's one of the underperformers, up just 1/10th of a percent. Guys.

Yes, indeed. Thank you so much, Inez. Appreciate it.