What oil’s six-week win streak means for stocks
Oil prices have risen for sixth consecutive weeks, notching an 11% gain for crude during the rally. While a pullback could occur — the oil trade was close to flat on Tuesday as overseas supply threats balanced higher U.S. inventories — recent history suggests there are more gains to come, not just in oil but also in stocks.
Similar six-week oil rallies have happened only five times since 2010, according to a CNBC analysis of Kensho, a big data trading tool used by Wall Street banks and investment firms.
While oil has tended to pull back slightly the week after a six-week period of gains, two weeks later it starts to move higher again, and a full month later oil locks in additional gains.
WTI crude has traded higher more than 80% of the time and tacked on an additional average gain of more than 2.5%.
The S&P 500 also traded higher, although it had more modest gains.