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Sector Update: Energy Stocks Fall Wednesday Afternoon

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Energy stocks were lower Wednesday afternoon, with the NYSE Energy Sector Index falling 1.8% and the State Street Energy Select Sector SPDR ETF (XLE) dropping 2.1%.

The Philadelphia Oil Service Sector Index was 0.3% lower, while the Dow Jones US Utilities Index added 0.6%.

In sector news, Iran negotiations are in the final stages, Reuters cited US President Donald Trump as saying on Wednesday. But Trump warned of further attacks unless Tehran agrees to a deal. "We're in the final stages of Iran. We'll see what happens," Trump was cited as telling reporters. "Either have a deal, or we're going to do some things that are a little bit nasty, but hopefully that won't happen."

Front-month West Texas Intermediate crude oil was declining 0.8% to $107.77 a barrel, and the global benchmark Brent crude contract was dropping 5.9% to $104.67 a barrel. Henry Hub natural gas futures fell 3.1% to $3.02 per 1 million BTU.

US crude oil stocks, including those in the Strategic Petroleum Reserve, declined by 17.8 million barrels in the week ended May 15 following a decrease of 12.9 million barrels in the previous week. Excluding inventories in the SPR, commercial crude oil stocks decreased by 7.9 million barrels after a 4.3-million-barrel decline in the previous week, a larger decline than the 2.5-million-barrel decrease expected in a Bloomberg survey.

In corporate news, BP (BP) said Wednesday the United Steelworkers, or USW, Local 7-1 has agreed to the company's request to resume negotiations on Friday over Whiting Refinery. BP shares were down 1.8%.

Shell (SHEL) unit BG International has sold participating interests in three exploration blocks offshore Uruguay to QatarEnergy. Shell shares were shedding 1.9%.

Ecopetrol (EC) said Wednesday it has bought a 49% stake in two of the six projects comprising the Jemeiwaa Ka'I wind cluster in La Guajira, Colombia, for $25.5 million. Shares fell 2%.

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