Energy Stocks Find Fuel In Dollar Decline
This morning, the leading energy sector is bouncing higher helping to lift the S&P 500 Index. It is important to note that the energy sector accounts for roughly 16.0 percent of the S&P 500 Index. WTI oil is trading higher this morning by $1.60 to $98.30 a barrel. Leading financial firms Goldman Sachs Group Inc.(NYSE:GS), and Morgan Stanley(NYSE:GS) upgraded WTI oil to $130.00 a barrel. This upgrade looks to be having a positive effect on spot crude and most energy stocks to start the day.
Some leading energy equities that are trading higher this morning include United States Gasoline Fund(NYSE:UGA), ConocoPhillips(NYSE:COP), and Noble Energy Inc.(NYSE:NBL). Short term day traders must keep one eye on the U.S. Dollar Index as the dollar has had the strongest influence on the leading energy stocks. As long as the U.S. Dollar Index holds steady, or declines throughout the day, the energy stocks should hold on to their gains. Should the U.S. Dollar Index trade higher it would be prudent to expect the leading energy stocks to deflate and sell off from the morning highs.