Sector Update: Energy Stocks Tumble Late Afternoon
Energy stocks experienced a significant decline late Thursday, with the NYSE Energy Sector Index down 6.1% and the Energy Select Sector SPDR Fund (XLE) falling 7.8%. Crude oil prices also dropped, with West Texas Intermediate at $60.26 per barrel. In corporate news, Portland General Electric shares fell 1.8% after a downgrade by JPMorgan, while Essential Utilities shares rose 1.6% due to planned investments. AES shares dropped 8.3% following a downgrade by Jefferies, and Petrobras shares fell 7.9% amid auction evaluations in India.
Energy stocks slumped late Thursday afternoon with the NYSE Energy Sector Index dropping 6.1% and the Energy Select Sector SPDR Fund (XLE) sliding 7.8%.
The Philadelphia Oil Service Sector index tumbled 10%, and the Dow Jones US Utilities index dropped 0.4%.
West Texas Intermediate crude oil fell 3.4% to $60.26 a barrel, and global benchmark Brent dropped 3% to $63.52 a barrel.
US natural gas stocks rose by 57 billion cubic feet in the week ended Friday versus the 58 billion increase expected in a Bloomberg survey and following a gain of 29 billion in the previous week.
Henry Hub natural gas futures fell 7.4% to $3.53 per 1 million BTU.
In corporate news, Portland General Electric shares shed 1.8% after JPMorgan downgraded the stock to neutral from overweight and cut its price target to $44 from $50.
Essential Utilities plans to invest $1.4 billion this year in infrastructure its nine-state network, partly to upgrade water and natural gas assets. The shares rose 1.6%.
AES shares dropped 8.3% after Jefferies downgraded the stock to hold from buy and cut its price target to $10 from $15.
Petrobras is evaluating bids on oil blocks in India's auctions within the year, Reuters reported, citing Sylvia dos Anjos, the head of exploration and production. The shares fell 7.9%.
