COM - Energy stocks sink as crude oil drops to four-week lows

2023-10-04 12:15:11 ET

• Energy ( NYSEARCA: XLE ) is by far the worst S&P sector performer in Wednesday's trading, -3.1% , pressured by the recent pullback in crude oil prices to the lowest in four weeks.
• Crude oil fell early following news that Saudi Arabia, as expected, affirmed its plan to extend production cuts of 1M bbl/day through year-end, then losses accelerated after U.S. government data showed a smaller than expected weekly decline in domestic crude supplies and a mich larger than expected 6.5M-barrel jump in gasoline inventories .
• U.S. crude stocks fell by 2.2M barrels to 414M barrels in the week ending September 29, but stocks at the Cushing, Oklahoma, storage hub rose for the first time in eight weeks, according to the EIA.
• Oil prices also have felt increasing pressure from demand fears driven by macroeconomic headwinds.
• WTI crude oil ( CL1:COM ) for November delivery currently -4.7% to $85.04/bbl, and December Brent crude ( CO1:COM ) -4.5% to $86.83/bbl, both at their lowest levels since early September.
• November gasoline recently traded -5.4% to $2.232/gal, the lowest since January, while November heating oil was -4.5% to $3.05/gal.
• ETFs: ( XLE ), ( NYSEARCA: XOP ), ( VDE ), ( OIH ), ( XES ), ( IEZ ), ( CRAK ), ( NYSEARCA: USO ), ( BNO ), ( UCO ), ( SCO ), ( USL ), ( DBO ), ( DRIP ), ( GUSH ), ( NRGU ), ( USOI ), ( UGA )
• Oil refiners are among the sector's largest losers, including PBF Energy ( PBF ) -7.1% , Phillips 66 ( PSX ) -4.5% , Delek US Holdings ( DK ) -3.8% , Marathon Petroleum ( MPC ) -3.6% , Valero Energy ( VLO ) -3.6% .
• Also showing up among the S&P 500's biggest decliners: APA Corp. ( APA ) -5% , Marathon Oil ( MRO ) -4.7% , Devon Energy ( DVN ) -4.3% , Occidental Petroleum ( OXY ) -4.1% , SLB ( SLB ) -3.8% , Pioneer Natural Resources ( PXD ) -3.7% , ConocoPhillips ( COP ) -3.4% , Diamondback Energy ( FANG ) -3.4% , EOG Resources ( EOG ) -3.4% , Halliburton ( HAL ) -3.4% .

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