Resistance may pose challenge as oil extends significant weekly loss due to roll-over of OPEC output cuts

Last week, the oil market saw a significant downturn, the most substantial in three months. This drop was driven by concerns over weakening demand and speculations surrounding OPEC's June meeting. The United Arab Emirates' announcement of an increase in production capacity further added uncertainty to the future of the alliance.

Additionally, reports of a 7.3 million barrel rise in crude stocks and the Federal Reserve's hesitance to cut interest rates contributed to a 6.8% decrease in front-month Nymex crude prices and a 5.9% decline in front-month July Brent crude prices. On a positive note, front-month June Nymex natural gas experienced a 5.2% gain on Friday, ending the week up 11.4% due to decreased production and heightened demand from the power sector. Despite a reduction in active U.S. oil rigs, oil prices struggled to find support as concerns about demand and refinery processing rates persisted. Within the energy sector, the Energy Select Sector SPDR ETF performed poorly, declining by 3.3% for the week.

Some top performers in energy and natural resources included Enovix, TPI Composites, and Blink Charging, which saw significant increases in their stock prices. Conversely, Critical Metals, Profrac Holding, and CVR Energy were among the top decliners, experiencing double-digit percentage declines in their stock prices.