Energy ETFs have been the market’s best-performing sector the past month thanks in part to rising oil prices.
Energy Select Sector SPDR (NYSEArca: XLE) was up 11.4% for the month ended Aug. 10, while iShares S&P 500 (NYSEArca: IVV) has added 5%.
U.S. crude prices briefly rose above $94 a barrel on Monday and are near the highest level in about three months.
Meanwhile, Brent crude climbed over $115 a barrel on concerns over supply and geopolitical tensions in the Middle East “including an intensifying debate in Israel on whether to strike Iran’s disputed nuclear program,” Reuters reports.
Oil has also gotten a boost recently from speculation that central banks will announce more economic stimulus.
The recent outperformance of cyclical sectors such as energy and retailers are positive technical signs for the equity market, says J.C. Parets at All Star Charts.
Energy Select Sector SPDR
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