Sector Update: Energy Stocks Fall Late Afternoon
Energy stocks were lower late Wednesday afternoon, with the NYSE Energy Sector Index falling 3.1% and the State Street Energy Select Sector SPDR ETF (XLE) dropping 2.8%.The Philadelphia Oil Service Sector Index was shedding 3%, and the Dow Jones US Utilities Index decreased 0.2%.Front-month West Texas Intermediate crude oil fell 3.7% to $101.89 a barrel, and the global benchmark Brent crude contract shed 3.2% to $105.27 a barrel. Henry Hub natural gas futures declined 1% to $2.89 per 1 million BTU.US crude oil stocks, including those in the Strategic Petroleum Reserve, fell by 1.0 million barrels in the week ended Sept. 11 following a decrease of 1.6 million barrels in the previous week. Excluding inventories in the SPR, commercial crude oil stocks fell by 600,000 barrels after a 400,000-barrel decline in the previous week, a smaller decline than the 1.5-million-barrel decrease expected in a survey compiled by Bloomberg.In corporate news, National Fuel Gas (NFG) is exploring options for its integrated natural gas production business, Reuters reported. Any deal would value the unit at about $5 billion, the report said. Shares of the company were down 1.4%.Chord Energy (CHRD) said Wednesday it has agreed to sell gas-producing land assets to Posco International for $550 million. Chord Energy shares fell 6.3%.Exxon Mobil (XOM) won approval for its Rose carbon-capture project in Texas, allowing the company to move forward with the development, Bloomberg reported. Exxon Mobil shares were down 3.4%.Delixy (DLXY) said it has struck a non-binding letter of intent with Caog for the acquisition or merger of up to 48% of shares in Tarbagatay Munay, the subsoil user and operator of the oil and gas project of Sarybulak Oil Field in East Kazakhstan. Delixy shares surged 389%.
