Industry update: Energy stocks slip Wednesday amid falling commodity prices

Energy stocks ended lower this afternoon, with the NYSE Energy Sector Index dropping 2% while the SPDR Energy Select Sector ETF (XLE) fell 3%. The Philadelphia Oil-Service Sector Index fell 1.5% and the Dow Jones US Utilities Index slipped 0.1% at the end of the session.

West Texas Intermediate crude oil was $1.98 lower at $109.78 a barrel, restoring an early morning lead after the Energy Information Administration reported a 2.8 million barrel drop in commercial inventories over the past seven days ending June 24 versus market expectations anticipating a drawdown of 950,000 barrels. .

Brent crude fell $2.27 to $109.49 a barrel while Henry Hub natural gas futures fell $0.07 to $6.50 per 1 million BTU.

In company news, SunPower (SPWR) plunged nearly 11% after Wells Fargo began hedging the solar tech company with an underweight stock rating and a price target of $17. .

Exxon Mobil (XOM) fell 3.8% after the energy major announced overnight the sale of its XTO Energy Canada joint venture with Imperial Oil (IMO) to Whitecap Resources (WCP.TO) for around $1.47 billion in cash. The agreement includes 567,000 net acres in the Montney Siltstone Zone in northern British Columbia and Alberta, as well as 72,000 net acres in the Duvernay Shale. Imperial shares also fell 3.5%.

Baker Hughes (BKR) fell 1.6%, reversing an early 1.5% advance that followed Tellurian (TELL) saying it had chosen the oil services company to supply four 19-megawatt compressors for the initial phase of its Driftwood Gas Pipeline Project in Louisiana. The $240 million contract also calls for Baker Hughes to supply an LM6000PF+ gas turbine and other turbomachinery equipment. Tellurian stocks were slipping 7% this afternoon.

On the upside, Superior Drilling Products (SDPI) climbed 2% after announcing on Wednesday that its Hard Rock Solutions unit had reached an agreement with Bin Zayed Petroleum for Investment to become the exclusive distributor of its Drill wellbore conditioning system. -N-Ream in the Middle East. and North Africa.

You might also like

Previous Live News: Transport and fuel subsidies bring German inflation down to 8.2%
Next Malaysia sees Central Asian countries as a new axis of growth