Energy exploration and production sector-related exchange traded funds led market gains Wednesday as U.S. crude prices pushed back above $60 per barrel, a four-month high, on tightening oil supplies in the U.S.
Among the best performing non-leveraged ETFs of Wednesday, the Invesco Dynamic Energy Exploration & Production Portfolio (NYSEArca: PXE) increased 2.6%, SPDR S&P Oil & Gas Exploration & Production ETF (NYSEArca: XOP) advanced 3.4% and VanEck Vectors Oil Services ETF (NYSEArca: OIH) gained 2.1%.
The energy sector rallied after the U.S. Energy Information Administration revealed tightening oil supplies with a large and unexpected drop in crude inventories due to strong export and refining demand, which helped prop up crude oil futures. West Texas Intermediate crude oil futures were up 1.7% to $60.06 per barrel late Wednesday.
Stockpiles declined 9.6 million barrels last week, compared to expectations of an increase of 309,000 barrels, Reuters reports. The drawdown was the largest since July 2018 and dragged stockpiles down to their lowest since January.
Additionally, gasoline and distillate inventories both decreased by more than expected, with gasoline stocks down by 4.6 million barrels and distillate inventories 4.1 million barrels lower.