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Sector Update: Energy Stocks Higher Late Afternoon

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-- Energy stocks were higher late Tuesday afternoon, with the NYSE Energy Sector Index rising 1.4% and the State Street Energy Select Sector SPDR ETF (XLE) climbing 1.8%.

The Philadelphia Oil Service Sector Index was increasing 0.2%, and the Dow Jones US Utilities Index was shedding 0.2%.

In sector news, the United Arab Emirates will leave the Organization of the Petroleum Exporting Countries and its more expanded version, OPEC+, effective May 1, the Emirates News Agency reported.

This comes as Iran's latest proposal to end the war in the Middle East has still not won President Donald Trump's backing, leaving the deadly conflict in a continuing state of deadlock, Reuters reported Tuesday, citing an unnamed US official.

Front-month West Texas Intermediate crude oil gained 3.7% to $99.90 a barrel, and the global benchmark Brent crude contract rose 2.7% to $111.17 a barrel. Henry Hub natural gas futures increased 0.4% to $2.56 per 1 million BTU.

In corporate news, Chevron (CVX) signed a memorandum of understanding with Libya's National Oil Corporation, or NOC, to conduct a joint study evaluating the potential of unconventional shale oil and gas resources in sedimentary basins across the country, NOC said Tuesday. Separately, Chevron is in advanced talks to sell a portfolio of Asian assets to Eneos in a deal that could be valued at more than $2 billion, Bloomberg reported. Chevron shares climbed 1.9%.

Equinor (EQNR) shares rose 1.1% after Morgan Stanley upgraded the stock to equal weight from underweight and raised its price target to $40.40 from $22.80.

NextEra Energy (NEE) shares gained 1.5% after it said the US Nuclear Regulatory Commission approved operating license renewals for Florida Power & Light's St. Lucie nuclear units, extending Unit 1 to 2056 and Unit 2 to 2063.

BP (BP) shares added 0.8%. The company reported Q1 underlying replacement cost profit Tuesday of $1.24 per American depositary share, up from $0.53 a year earlier. Sales and other operating revenue for the quarter totaled $52.26 billion, up from $46.91 billion a year earlier. Analysts polled by FactSet expected $49.4 billion.

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