While crude oil price gave up the day’s gain, oil services stocks and sector-related ETFs remained among the best performers of the U.S. equity segment.
On Wednesday, the SPDR Oil & Gas Equipment & Services ETF (NYSEArca: XES) increased 3.2% and iShares U.S. Oil Equipment & Services ETF (NYSEArca: IEZ) advanced 2.5%, both ending a week-long losing streak, as traders may have saw a buying opportunity in a relatively cheaper market. Both XES and IEZ continue to trade below a 30 reading on the relative strength index, reflecting their undervalued conditions.
Meanwhile, West Texas Intermediate crude oil futures slipped 1.0% to $51.1 per barrel in late Wednesday trading after staying positive for most of the day.
Crude oil prices drew support earlier in the day from a report revealing a drop in U.S. crude inventories, a cut in Libyan exports and an OPEC deal that would cut output.
According to the U.S. Energy Information Administration, U.S. crude stockpiles declined by 1.2 million barrels for the week ended December 7, which was smaller than the 3 million barrels analysts had anticipated and lower than the draw reported by the American Petroleum Institute, Reuters reports.