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Sectors
Sector Update: Energy
Energy stocks rose Thursday afternoon with the NYSE Energy Sector Index gaining 1% and the State Street Energy Select Sector SPDR ETF (XLE) climbing 0.8%.The Philadelphia Oil Service Sector Index advanced 0.5%, and the Dow Jones US Utilities Index rose 1.3%.West Texas Intermediate crude oil fell 2.4% to $104.37 a barrel, and global benchmark Brent dropped 3.5% to $113.93 a barrel. Henry Hub natural gas futures rose 3.9% to $2.75 per 1 million BTU.In corporate news, Apollo Global Management (APO), Blackstone (BX) and KKR (KKR) are among the final bidders for a major stake in Shell's (SHEL) LNG Canada project in a deal that could top $10 billion and reach as much as $15 billion, Reuters reported. Shell shares rose 1.3%.
$SHEL
Oil & Energy
EMEA Oil Update: Crude Retreats from War-Time Highs as US-Iran Tensions Escalate
EMEA crude futures retreated in after-hours trading on Thursday on reports that the US military would brief President Trump on potential action against Iran, raising concerns about a prolonged Middle East supply disruption.Brent crude futures dropped by 3.41% to $114.09 per barrel, while Murban oil futures were down 3.40% to $109.61/bbl.ING strategists said that the breakdown in talks between the US and Iran has left the market losing hope of a quick resumption in oil flows.Analysts estimate demand destruction of 1.6 million barrels per day in the region, which they say is not enough to fill the current supply gap.Trump is reportedly set to receive a briefing from the head of US Central Command, Admiral Brad Cooper, on plans for a series of new military strikes on Iran to force it to negotiate a deal to end the conflict.The US President said he won't lift the naval blockade of Iranian ports until he secures a nuclear deal with Tehran, extending the standoff, disrupting energy flows via the Strait of Hormuz, according to media reports.Meanwhile, Iranian authorities vowed to respond with "long and painful strikes" on US positions if Washington renewed attacks, while reasserting control over the Hormuz.Iran Revolutionary Guards said that any new US military aggression would trigger previously undisclosed Iranian capabilities, including advanced smart targeting systems."You have seen the fate of your bases in the region; you will also see the fate of your warships", IRGC Aerospace Force Commander Majid Mousavi reportedly said.Iran's Supreme Leader, Mojtaba Khamenei, also said that Tehran would eliminate what he described as the enemy's abuse of the waterway under the new management of the strait, as his country moves to assert its control over the key chokepoint.The second round of US-Iran talks to end the Middle East conflict has stalled in recent days as the two sides refuse to budge in negotiations and Tehran attempts to separate the Hormuz issue from its nuclear program."With markets continuing to tighten, the near-term risk remains skewed toward higher prices until the Strait reopens," Saxo Bank strategists said in a note on Thursday.On the supply front, OPEC+ is expected to agree on another symbolic production increase of 188,000 barrels per day for June, in the group's first move following the surprise departure of the UAE. ING said that the UAE's exit from OPEC is a big blow to the group, but will have little impact on the market in the short term amid ongoing supply disruptions.
Research
Research Alert: CFRA Keeps Buy Opinion On Shares Of Firstenergy Corp.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We trim our 12-month target by $1 to $55, 20.0x our next-12-month EPS view of $2.75, a premium to its five-year average of 15.6x. We reduce our 2026 EPS view by $0.02 to $2.72 and 2027 EPS by $0.01 to $2.93. The Q1 core EPS increase (+7.5% Y/Y) breaks a three-quarter streak of declines, and we see continued momentum throughout our forecast horizon. We see positive data center demand trends, with long-term contracted demand (4.3 GW) up 4% since February 2026 (4.1 GW) and up 47% since February 2025 (2.9 GW), while pipeline demand (14.9 GW) is up 15% since February 2026 (12.9 GW) and has more than doubled since February 2025 (6.1 GW). FE has reduced base O&M by over $200M (15%) since 2022, with Q1 2026 showing an additional ~5% YoY decline, while simultaneously improving reliability metrics. We think FE's cost discipline, service quality improvement, and competitive rate positioning should translate into more favorable rate case outcomes, reduced disallowance risk, and potentially higher allowed ROEs.
$FE