⚡️BP Declines Alongside Energy Sector Drop Despite Ongoing Buybacks; USO Slides as Oil Drops on Iran Strike and Volatile Supply Outlook | Energy Sector Insights
The energy sector underperformed sharply despite rising geopolitical risk. U.S. airstrikes on Iranian nuclear sites elevated supply concerns, yet Brent crude fell sharply. XOM and CVX led the decline, while the sector recorded its largest weekly inflow since October 2023.
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Below are AI-generated insights on moves in the energy sector, powered by MarketReader technology.
Monday, June 23
XLE [-3.4%]
Energy Select Sector SPDR Fund
The Energy Select Sector SPDR Fund (XLE) has declined by 3.4% since Friday, amid escalating geopolitical tensions following U.S. airstrikes on Iranian nuclear facilities. Iran's threats to close the Strait of Hormuz have heightened concerns over potential disruptions to global oil supply, coinciding with a significant drop in Brent crude oil prices. Social media discussions highlight that, despite a rise in crude prices, XLE has underperformed, with reports indicating it was the only sector in decline today. Notable contributors to XLE's performance include ExxonMobil and Chevron, both of which experienced significant losses. Additionally, the energy sector saw a substantial weekly inflow of $1 billion, the largest since October 2023. Concerns regarding Iranian retaliation and its potential impact on U.S. personnel and oil flows are prevalent among market participants.