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Sector Update: Energy Stocks Fall Thursday Afternoon

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Energy stocks were lower Thursday afternoon, with the NYSE Energy Sector Index falling 1.9% and the State Street Energy Select Sector SPDR ETF (XLE) dropping 2%.

The Philadelphia Oil Service Sector Index shed 3.5%, and the Dow Jones US Utilities Index rose 1.2%.

Crude oil prices fell after 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 dropped 2.3% to $75.04 a barrel, and the global benchmark Brent crude contract fell 2% to $77.95 a barrel. Henry Hub natural gas futures gained 2.5% to $3.22 per 1 million BTU.

US natural gas stocks rose 73 billion cubic feet in the week ended June 12, below the 76 billion rise expected in a Bloomberg survey and following an increase of 108 billion cubic feet in the previous week.

In corporate news, New Fortress Energy (NFE) shares fell 7.5%. The firm said Thursday the UK restructuring plan between its subsidiaries and some creditors was approved at a hearing in the High Court of Justice of England and Wales.

Energy Transfer (ET) said 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 0.7%.

Venture Global (VG) signed new binding agreements with German energy company EnBW to supply 820,000 tonnes per annum of US liquefied natural gas over a period of five years starting this year. Venture Global shares shed 1.2%.

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