The ZLT was off 5% last week and is off 8.9% YTD.
The XOP and XNG were off 4% and 5% respectively last week and are off 8.5% and 8.6% respectively YTD.
U.S. front month crude was flat last week and is essentially flat on the year while the 12 month strip was flat on the week and is off 3% on the year as the curve has flattened. The OPEC basket is up 1% on the year. OPEC has been more than delivering on expectations with compliance running north of 90% according to credible sources.
We see the recent pull back in the upstream and Service names as a function of profit taking taking place after a strong 2016 with service inflation fears and weather playing a roll in the recent slippage.