Wall Street lacked clear direction on Tuesday, as mixed labor market data failed to ignite a fresh wave of risk-on sentiment.Nonfarm payrolls rose by 64,000 in November, topping expectations of 50,000. However, the unemployment rate climbed to 4.6%, the highest level since September 2021. • Affirm Holdings shares are climbing with conviction. What’s driving AFRM stock higher?October figures, delayed by more than two months due to the government shutdown, added further noise. Payrolls fell by 105,000, largel ...

Key Takeaways Phillips 66 completed the sale of 65% of its German and Austrian retail marketing business.The transaction valued the business at $2.8B and generated $1.6B in pre-tax proceeds for PSX.Phillips 66 says the move boosts long-term value, cuts debt, and aligns with its ongoing divestment strategy.On Dec 1, 2025, Phillips 66 (PSX) completed the divestment of 65% interest in its German and Austrian fuel retail marketing business. The buyer was a consortium owned by the affiliates of Energy Equation P ...

Oil prices rebounded in early Asian trade on Monday following the latest OPEC+ meeting, as traders responded to the producer group’s decision to hold output steady through the first quarter of 2026. At the time of writing, West Texas Intermediate crude stood at $59.32, up 1.32%, while Brent crude had climbed to $63.16, up 1.25%. The bounce reflects relief over the group’s cautious stance, with OPEC+ reaffirming its plan to maintain current production levels rather than raise output further. The move had ...

Group 1 - U.S. oil prices are trading near their lowest level since February 2021, with West Texas Intermediate crude settling at $57.42 per barrel [1] - Goldman Sachs recommends investors to short U.S. oil, indicating a bearish outlook on the commodity [1] - The stock market is experiencing volatility, with notable movements in stocks like Merck, which is breaking out past its latest buy point [1][2] Group 2 - The market is closely watching Nvidia's earnings, which could impact tech stocks significantly [4] - Several stocks, including Eli Lilly and CrowdStrike, are near buy points, indicating potential investment opportunities [4]

Core Insights - Oil prices are experiencing upward momentum, with West Texas Intermediate crude rising as much as 1.5% towards $61 a barrel, driven by increasing premiums for fuels like gasoline and diesel [1][4] - The market is witnessing a potential shift as commodity trading advisors may trigger additional buying if prices exceed $64.50, although volatility may be limited by hedging flows from dealers [2][5] - Despite recent gains, the oil market has faced a downturn this year due to expectations of a global surplus, exacerbated by OPEC and its allies loosening output curbs while non-OPEC drillers increase production [3][5] Market Dynamics - The prompt spread of West Texas Intermediate crude has narrowed to a premium of just 7 cents a barrel, indicating a weakening bullish backwardation price structure as oversupply is anticipated [4] - Refined product markets remain robust, with strong premiums for fuels, particularly in Europe, which have helped sustain crude prices amidst geopolitical risks [4][5] - Analysts suggest that without the support from refined products, crude prices would likely be lower, indicating a reliance on these markets for price stability [5] Future Outlook - OPEC is set to release its monthly market analysis, while the International Energy Agency will provide an annual outlook, with forecasts indicating a record annual glut for 2026 [5]

Core Insights - Oil prices showed recovery from early losses due to optimism surrounding a potential trade deal framework between the U.S. and China, despite ongoing concerns about weak crude demand [1][2] - Brent crude futures were at $65.70 per barrel, while U.S. West Texas Intermediate crude futures were at $61.41, both experiencing a decline of nearly 0.2% [1] Demand Concerns - The oil market remains skeptical about trade deals, with analysts noting that a positive negotiating atmosphere does not guarantee increased demand [2] - Concerns over lackluster demand have pressured oil prices, with Brent crude falling to its lowest level since May earlier this month [3] - Stronger-than-expected U.S. demand and renewed sanctions on Russia have provided some support for oil prices [3] OPEC Dynamics - Iraq, as the largest overproducer in OPEC, is currently negotiating its production quota within a capacity of 5.5 million barrels per day [4] - OPEC and its allies have reversed previous production cuts this year to regain market share, which has contributed to stabilizing oil prices [4] Recent Price Movements - Last week, Brent and WTI crude prices increased by 8.9% and 7.7%, respectively, due to U.S. and EU sanctions on Russia [5] - The ongoing challenges for Russian oil to enter the market depend on the enforcement of sanctions [5]

Core Insights - The oil/energy sector is facing challenges in Q1 2025 due to fluctuating commodity prices, with oil prices declining and natural gas prices increasing, leading to a mixed outlook for the sector [1][2][3] Oil Price Performance - West Texas Intermediate crude's average price fell to $71.84 per barrel, down from $77.56 the previous year, influenced by sluggish global economic growth, rising oil production from non-OPEC+ countries, potential output increases by OPEC+, and weaker demand [2] - Additional downward pressure on oil prices is attributed to growing trade tensions and an increase in oil inventories [2] Natural Gas Price Performance - The Henry Hub spot price for natural gas averaged $4.15 per million British thermal units (MMBtu), nearly doubling from $2.13 MMBtu in the same quarter last year, driven by unusually cold weather and increased heating demand [3] - The rise in liquefied natural gas (LNG) exports has also contributed to tighter supply and elevated prices [3] Sector Earnings Trends - Sector earnings are projected to decline by 13.6% year over year, while revenues have increased by only 0.7%, insufficient to offset the decline in profitability [4] - The decline in earnings is primarily due to weaker oil prices compressing margins across the sector [4] Comparative Sector Performance - The oil/energy sector is underperforming compared to other sectors, such as Technology and Medical, which are experiencing strong earnings growth [5] - Excluding the oil/energy sector, the S&P 500's overall earnings growth improves to 4.4%, highlighting the negative impact of the oil/energy sector on aggregate results [6] Company Earnings Focus - Companies in the oil/energy sector are preparing for their Q1 earnings reports, with a focus on achieving a positive Earnings ESP and a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) to increase the odds of an earnings beat [7] Company-Specific Insights - **Cheniere Energy, Inc. (LNG)**: Expected earnings of $2.81 per share, a 31.92% increase year-over-year, with a history of beating estimates [11] - **Canadian Natural Resources Limited (CNQ)**: Expected earnings of 73 cents per share, a 43.14% increase year-over-year, with mixed performance in beating estimates [13] - **Cenovus Energy Inc. (CVE)**: Expected earnings of 29 cents per share, a 36.96% decrease year-over-year, with a history of missing estimates [15] - **Berry Corporation (BRY)**: Expected earnings of 10 cents per share, a 28.57% decrease year-over-year, with limited success in beating estimates [17]

Core Insights - The oil/energy sector is experiencing significant challenges in Q1 2025 due to fluctuating commodity prices and market uncertainties, with oil prices declining and natural gas prices increasing, creating a mixed environment for companies in this sector [1] Oil Price Performance - In Q1 2025, the average price of West Texas Intermediate crude fell to $71.84 per barrel, down from $77.56 in the previous year, driven by concerns over weaker global economic growth, increased supply from non-OPEC+ nations, and lower-than-expected demand [2] - Escalating trade tensions and rising oil inventories further pressured oil prices [2] Natural Gas Price Trends - Natural gas prices increased significantly, with the Henry Hub spot price averaging $4.15 per million British thermal units (MMBtu), up from $2.13 per MMBtu in the prior-year quarter, primarily due to colder weather boosting heating demand and rising LNG exports [3] Earnings Outlook for Oil/Energy Sector - Oil/energy companies in the S&P 500 are projected to report an 11.1% year-over-year earnings decline for Q1 2025, continuing a downward trend from the previous quarter [4] - In contrast, the broader S&P 500 is expected to see a 6.8% earnings increase, highlighting the underperformance of the oil/energy sector [5] Revenue Trends - Revenue for oil/energy companies is projected to decline by 0.4% year-over-year, while S&P 500 revenues are on track to grow by 3.9%, indicating struggles in maintaining top-line growth in a changing commodity environment [6] Margin Compression - The earnings drag from lower oil prices continues to dominate despite higher natural gas prices, compressing margins and making it difficult for companies to deliver consistent results [7][9] Sector Performance Comparison - Other sectors, such as Technology (+12.5%), Medical (+34.7%), and Utilities (+14.1%), are experiencing strong earnings growth, while the oil/energy sector remains the worst performer alongside other weak sectors like autos and basic materials [8] Company-Specific Earnings Insights - TechnipFMC plc (FTI) has an Earnings ESP of -0.92% and a Zacks Rank 3, indicating low chances of an earnings beat, with a consensus estimate of 36 cents per share, suggesting a 63.64% increase from the prior year [11][13] - Valero Energy Corporation (VLO) has an Earnings ESP of -14.71% and a Zacks Rank 3, with a consensus estimate of 43 cents per share, indicating an 88.74% decrease from the prior year [13] - RPC, Inc. (RES) has an Earnings ESP of 0.00% and a Zacks Rank 3, with a consensus estimate of 7 cents per share, suggesting a 46.15% decrease from the prior year [14][15] - CNX Resources Corporation (CNX) has an Earnings ESP of -2.96% and a Zacks Rank 3, with a consensus estimate of 65 cents per share, indicating a 44.44% increase from the prior year [16][17]