NRGU - Energy stocks sink oil tumbles on fears of large U.S. interest rate hikes

Energy ( NYSEARCA: XLE ) is the biggest sector decliner by far in early trading in a broad stock market rout Thursday, with WTI August crude oil ( CL1:COM ) -4.3% at $92.11/bbl and September Brent crude ( CO1:COM ) -3.5% at $$96.10/bbl.

Nine of the 15 biggest decliners on the S&P 500 are oil and gas stocks: ( HAL ) -6.8% , ( APA ) -6.7% , ( EOG ) -6.2% , ( MRO ) -5.9% , ( FANG ) -5.8% , ( DVN ) -5.4% , ( HES ) -5.3% , ( COP ) -5.3% , ( VLO ) -5% .

ETFs: ( XLE ), ( NYSEARCA: XOP ), ( VDE ), ( OIH ), ( IEO ), ( DRIP ), ( CRAK ), ( NYSEARCA: USO ), ( UCO ), ( SCO ), ( USL ), ( DBO ), ( USOI ), ( NRGU )

Fears that aggressive interest rate hikes by the Federal Reserve and other major central banks in response to raging inflation could trigger a sharp economic slowdown has driven the two top crude benchmarks down more than 10% this week.

"It is hard to ignore recent concerns over oil fundamentals, both from the possible higher supply from the UAE and Saudi Arabia against the backdrop of weaker global demand that may very well open the door to test sub-Brent $85 if the Kingdom heeds Biden's pleas," said SPI Asset Management's Stephen Innes, referring to President Biden's upcoming visit to Saudi Arabia.

The S&P 500 Energy Sector index ( XLE ) has lost 25% since June 1, and energy shares may be losing their status as the place where investors can find refuge from this year's stock market carnage .

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