With oil in mind, the Energy Select Sector SPDR ETF (XLE) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) are trading lower, following a two-day wining streak.
As detailed by Morgan Brennan during an “ETF Spotlight” segment on CNBC, the XOP is coming off its worst day since mid-August. It’s down 7% since the day before, which is quite the drop.
The WTI Crude Oil Index is also seen to be retreating. This comes after President Trump said he ordered the Treasury Department to, “Substantially increase sanctions in Iran.”
As a result, so far, it’s been a ride for spikes in crude. All of the energy-related stocks and ETFs first spiked up, then spiked down. It’s an unpredictable level of volatility that would not have moved anywhere near this speed a couple of years ago.
That in mind, the story has not ended. It’s being watched closely, especially given whatever tweets Trump comes up with regarding more sanctions on Iran.
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