#TECHCHARTSMEMBERS# I've covered several #ENERGY# equities in the latest report. Continued strength for #CRUDEOIL# can build a "theme" in energy equities.
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Gulf crude and condensate exports ex-Iran recovered to about 16.5M bpd in September, near pre-war levels, Standard Chartered estimates. But only 60% crossed Hormuz vs 83% pre-war, so barrels move at higher cost. #Oil# #Hormuz# #CrudeOil# #OPEC#
Crude oil is driving equity moves, with the negative correlation between crude and stocks reaching its worst level in 30 years. $USO $SPY
Elevated energy costs are beginning to affect consumer behavior and pressure retail sales as the holiday shopping season approaches. $XRT
While the S&P 500 sits near highs, small-cap stocks in the Russell 2000 entered correction territory. $IWM
Elevated crude benefits integrated producers, pushing Chevron's operating cash flow to ~$45B. $CVX
Chevron leads on valuation and margins:
PEG ratio = 0.65
EBITDA margin = 24.2%
Is oil the biggest risk to the holiday trade?