Oil prices increased for the fifth straight session encouraged by the OPEC deal, which has cut U.S. oil production and rebalanced the oil market.

MarketWatch reports the price for West Texas Intermediate crude oil for December is “on track for its highest settlement price since early July 2015.” MarketWatch also points out that oil prices have recently been rising “on signs [OPEC] and a group of non-cartel countries led by Russia will extend their production deal aimed at bringing down global oil inventories. … OPEC is expected to agree on extending the output pact for at least nine months, from March 2018 until the end of 2018.”

The American Petroleum Institute reported that U.S. crude supplies dropped by 5.1 million barrels from the week ended on Oct. 27. Gasoline stockpiles fell by 7.7 million barrels, and distillates inventories lost 3.1 million barrels.

Overall, the U.S. is moving forward with the rebalancing process. As long as the OPEC deal is in place, the outlook for U.S. oil in the near future is favorable.

Sectors: Among Sector Benchmark ETFs, the average momentum score has remained around 11.41 for the last two weeks. Technology increased the most for the week, up 13 points. Health Care fell the most, down by 14. Telecom remained at the bottom, while cyclicals remained near the top, suggesting that the market has a continued appetite for risk. The spread between the highest and lowest increased slightly from 42 to 60.

Factors: The leading Factor Benchmark ETFs decreased for the week, going from 21.6 to 17.4. Momentum was the only factor that increased, up 1 point. Dividend Growth and High Beta decreased the most, losing 8 and 9 points, respectively. Momentum and High Beta led, while Low Volatility and Yield remained at the bottom. Factor rankings continue to suggest a market appetite for risk. The spread between top-ranked and bottom-ranked securities increased from 23 to 32.

Global: Among the leading Global Benchmark ETFs, the average score fell from 16.9 to 14 for the week. Japan increased from 27 to 29, while Latin America fell from 7 to -7. China is now in second place followed by the USA, which decreased from 19 to 17. The UK, Pacific, and Latin America regions remained at the bottom of the rankings.

2 week edge chart

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