Sector Update: Energy Stocks Decline Late Afternoon
Energy stocks were lower late Thursday afternoon, with the NYSE Energy Sector Index decreasing 0.5% and the State Street Energy Select Sector SPDR ETF (XLE) falling 1%.The Philadelphia Oil Service Sector Index was up 0.2%, and the Dow Jones US Utilities Index climbed 1%.In sector news, oil prices increased on Thursday as shipment activity through the Strait of Hormuz remained restricted despite a two-week ceasefire between Washington and Iran. The rebound in oil prices follows the sharpest one-day pullback since 2020 in the previous session as the US and Iran agreed to temporarily halt hostilities that had gripped the Middle East.Front-month West Texas Intermediate crude oil rose 5% to $99.24 a barrel, and the global benchmark Brent crude contract was advancing 2.5% to $97.12 a barrel.Henry Hub natural gas futures fell 1.5% to $2.68 per 1 million BTU.US natural gas stocks rose by 50 billion cubic feet in the week ended April 3, larger than the 48 billion increase expected in a survey compiled by Bloomberg as of 7:35 am ET and following a revised increase of 32 billion cubic feet in the previous week.In corporate news, Kosmos Energy (KOS) shares dropped 8.1% after Goldman Sachs downgraded the company's stock to sell from neutral, with a $2.25 price target.Chevron (CVX) expects higher commodity prices driven by the Middle East conflict to boost Q1 earnings in its upstream segment by up to $2.2 billion, though timing impacts could weigh on its bottom line. Its shares were down 1.2%.Exxon Mobil (XOM) is planning an overhaul in the spring and another at the end of the year at its Beaumont refinery in Texas, Reuters reported late Wednesday. Exxon shares shed 0.8%.Energy Vault (NRGV) shares gained 3% after it said Thursday it has agreed to buy a pipeline of battery energy storage system, or BESS, projects in Japan from a local company.