The worst performing big ETF performers, which there have been very few of, are found in the energy sector, see the chart below. Ari Wald of Oppenheimer and Gina Sanchez of Chantico Global discuss the next move with Brian Sullivan and if the oil-exposed EFT’s have sunk to their lowest or what should we expect. This is the worst performance of the energy sector since 2004, but Ari believes that this is part of the cyclical of under performers and is to be expected. While Gina agrees, she has a few additional thoughts about the possibility of a short term rally and the shale producers that continue to add to the rig counts, thus the supply continues increase, despite the fact we are headed into what is considered the driving season, May- August, when we expect the supplies to go down.
Furthering the conversation, Gina adds that she had heard that both OPEC and Non-OPEC members had agreed to extend their agreement to reduce their output an additional 9 months, thru March 2018, which many countries believe is a way to see their barrel prices increase and revive many countries economies.
Please click the link for the article regarding the OPEC agreement: OPEC DEAL & and a second article from Financial Times addressing the delay in reducing the supply cuts and pointing directly at America’s shale production : OPEC OIL CUTS