Sector Update: Energy Stocks Fall Late Afternoon
Energy stocks were lower late 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 declined 2.3%, and the Dow Jones US Utilities Index shed 1.1%.In geopolitical news, the US, Iran and Oman are moving toward an interim deal to reopen the Strait of Hormuz, with Washington looking at a Wednesday announcement, Axios reported, citing two regional sources and a US official. President Donald Trump reportedly said late Tuesday that an agreement to reopen the strait, the world's most important chokepoint for crude flows, was imminent. Meanwhile, Yemen's Iran-aligned Houthis claimed an attack on a Saudi Arabian tanker near the coast of Yanbu, a major port for Saudi crude oil exports, according to a CNBC report.Front-month West Texas Intermediate crude oil fell 0.7% to $75.23 a barrel, and the global benchmark Brent crude contract rose 0.2% to $79.50 a barrel. Henry Hub natural gas futures shed 0.4% to $2.67 per 1 million BTU.US crude oil stocks, including those in the Strategic Petroleum Reserve, fell by 400,000 barrels in the week ended July 31 following a decrease of 11.0 million barrels in the previous week. Excluding inventories in the SPR, commercial crude oil stocks rose by 2.5 million barrels after a 7.2-million-barrel decline in the previous week, compared with the 1.5-million-barrel decrease expected in a survey compiled by Bloomberg.In corporate news, Constellation Energy (CEG) said Wednesday its board has elected Chief Executive Officer and President Joe Dominguez as chairman. Constellation shares were down 0.9%.Gran Tierra Energy (GTE) shares surged 36% after the company said Wednesday it agreed to sell its oil business in Colombia and Ecuador to Paris-listed Etablissements Maurel & Prom for an enterprise value of $1.33 billion.BP's (BP) push to boost its balance sheet is set to pick up speed in H2, helped by firmer refining margins and ongoing asset sales, RBC Capital Markets said in a note. BP shares were down 3%.Natural Resource Partners (NRP) shares jumped past 8% after it reported its Q2 results.
