Sector Update: Energy Stocks Decline Late Afternoon
Energy stocks were lower late Wednesday afternoon, with the NYSE Energy Sector Index decreasing 0.9% and the State Street Energy Select Sector SPDR ETF (XLE) down 0.6%.The Philadelphia Oil Service Sector Index shed 2.1%, and the Dow Jones US Utilities Index declined 1.4%.On Wednesday, the US and Iran held indirect technical talks in Doha as they seek to agree on the flow of shipping through the Strait of Hormuz and secure a lasting ceasefire, a source with direct knowledge of the talks and an Iranian official told Reuters.Front-month West Texas Intermediate crude oil fell 1.7% to $68.31 a barrel, and the global benchmark Brent crude contract dropped 2.2% to $71.38 a barrel. Henry Hub natural gas futures declined 2.2% to $3.20 per 1 million BTU.In sector news, US crude oil stocks, including those in the Strategic Petroleum Reserve, fell by 9.3 million barrels in the week ended June 26 following a fall of 15.1 million barrels in the previous week. Excluding inventories in the SPR, commercial crude oil stocks declined by 3.8 million barrels after a 6.1 million barrel decrease in the previous week, a larger decline than the 2.2 million barrel decrease expected in a Bloomberg survey.In corporate news, Sable Offshore (SOC) shares surged 42% after the firm said Wednesday it has priced a combined equity and debt offering to raise capital and refinance borrowings tied to its energy assets.New Era Energy & Digital (NUAI) appointed new executives, including Charlie Nelson, currently president and chief operating officer, as chairman and chief executive, effective immediately, the company said Wednesday. Shares were falling past 17%.Eni (E) said it agreed with Mercuria to establish an equally owned joint venture to oversee energy commodities trading activities across global markets. Eni shares were down 2.6%.Equinor (EQNR) has entered into a letter of intent with Transocean (RIG) to charter three Cat D rigs for operations on the Norwegian continental shelf under an agreement valued at about $1 billion, the company said Wednesday. Equinor shares were shedding 0.7% lower, and Transocean was down 0.9%.
