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Sector Update: Energy

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Energy stocks were lower Thursday afternoon, with the NYSE Energy Sector Index and the State Street Energy Select Sector SPDR ETF (XLE) each falling about 2.1%.

The Philadelphia Oil Service Sector Index dropped 3.6%, and the Dow Jones US Utilities Index rose 1.5%.

In sector news, US President Donald Trump and Iranian President Masoud Pezeshkian digitally signed a memorandum of understanding aiming to reopen the Strait of Hormuz, lift the US blockade of Iranian ports, and pursue a permanent peace deal to end the war.

Front-month West Texas Intermediate crude oil fell 2.7% to $74.73 a barrel, and the global benchmark Brent crude contract dropped 2.2% to $77.80 a barrel. Henry Hub natural gas futures gained 1.4% to $3.19 per 1 million BTU.

In corporate news, Energy Transfer (ET) said Thursday it is expanding its Nederland, Texas NGL export terminal, adding 240,000 bpd of ethane capacity and 55,000 bpd of LPG capacity, with all ethane volumes committed under long-term contracts into the 2040s. Its shares rose 0.8%.

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