LIVE MARKETS-S&P 500 energy sector eyes record weekly win streak as Middle East risks mount

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

S&P 500 ENERGY SECTOR EYES RECORD WEEKLY WIN STREAK AS MIDDLE EAST RISKS MOUNT

Crude oil benchmarks are sharply higher on Tuesday for a third session as the U.S.-Israeli conflict with Iran widens, disrupting fuel shipments and heightening fears of further Middle East oil and gas supply disruption.

With this, NYMEX crude futures CLc1, which are advancing more than 13% for the week so far, are on track for their biggest weekly gain since a 16.54% jump in the week ended October 7, 2022. Shortly after the Russian invasion of Ukraine in late February 2022, the futures surged 26.3% in the week ended March 4, 2022.

NYMEX crude futures, which are now just over $76.00, are battling chart hurdles in the form of the 200-week moving average (WMA), as well as the Fibonacci-based 233-WMA.

Those hurdles now reside around $75.75 and $77.50. (At this time, Tuesday's intraday high was at $77.58).

Meanwhile, the weekly Relative Strength Index (RSI), which has risen to more than 72, is now at its most overbought since the week ending March 11, 2022. Of note, in the week ending March 4, 2022 the RSI topped at about 82.0.

In the event the futures overwhelm the moving averages, confirmed by the weekly close, the next levels include the late-June 2025 high at $78.40, the mid-January 2025 high at $80.77, and the early-June 2024 high at $84.77. (The futures would then need to reverse back below the 200-WMA to suggest the thrust higher had stalled.)

On a sudden downside turn, this week's gap, which requires a fall to $67.83 for a fill, can be an initial target.

Meanwhile, the S&P 500 energy .SPNY scored a record close on Monday. With this, the sector is now on track to rise for an 11th straight week. Using LSEG data back to late 1989, and going out three decimal places, the energy sector's record weekly winning streak was an 11-week stretch of gains that ended on June 1, 2007.

Energy, with a 26.8% year-to-date gain, is the top performing S&P 500 sector so far this year.

(Terence Gabriel)

EARLIER ON LIVE MARKETS:

THE EUROPEAN SECTORS WITH THE BIGGEST MIDDLE EAST EXPOSURE CLICK HERE

THE CASE FOR SHORT-LIVED TURMOIL CLICK HERE

EUROPEAN STOCKS BATTERED AS SPECTRE OF INFLATION RETURNS CLICK HERE

EUROPE BEFORE THE BELL: FUTURES SLIDE FURTHER CLICK HERE

TRUMP'S 'WHATEVER IT TAKES' VOW DEEPENS STOCK SELLOFF, LIFTS OIL CLICK HERE