Energy stocks were lower Friday afternoon, with the NYSE Energy Sector Index decreasing 0.2% and the State Street Energy Select Sector SPDR ETF (XLE) shedding 0.3%.
The Philadelphia Oil Service Sector Index was adding 0.9%, and the Dow Jones US Utilities Index was up 0.3%.
Crude oil prices fell as Washington said it remains committed to finding a diplomatic solution for Iran. Talks between the US and Iran over a permanent peace deal are continuing, Bloomberg reported, citing an American official, despite two days of clashes that threatened to shatter a ceasefire. The US is still committed to finding a diplomatic solution with Iran, the official told Bloomberg on Thursday. The official described the ongoing discussions as technical talks.
Front-month West Texas Intermediate crude oil fell 1.1% to $71.32 a barrel, and the global benchmark Brent crude contract decreased 0.7% to $75.79 a barrel. Henry Hub natural gas futures dropped 2.6% to $2.93 per 1 million BTU.
In sector news, the International Energy Agency on Friday projected a smaller decline in global oil demand in 2026 amid signs of a rebound in consumption as crude flows improve. The agency now expects oil consumption to fall by 1 million barrels per day this year, compared with a 1.1 million-barrel drop forecast in June. That would mark the first annual contraction since 2020, CNBC reported.
In corporate news, South Bow's (SOBO) subsidiaries South Bow USA and South Bow Infrastructure Operations have agreed to pay more than $26 million to settle allegations that the 2022 Keystone Pipeline rupture in Kansas violated the Clean Water Act, the Environmental Protection Agency, the Department of Justice and the State of Kansas said Friday. South Bow shares were down 0.9%.
Plains All American Pipeline's (PAA) Q2 results are likely to be pressured by the company's recent sale of its Canadian natural gas liquids business, UBS Securities said Thursday in a report. Plains All American shares were down 0.6%.
Solaris Energy Infrastructure (SEI) will join the S&P SmallCap 600, replacing Catalyst Pharmaceuticals (CPRX), effective prior to the opening of trading next Wednesday, S&P Dow Jones Indices said. Solaris shares rose 5.9%.