Industry Update: Energy stocks tumble as crude oil prices fall

Energy stocks were down this afternoon, with the NYSE Energy Sector Index and the SPDR Energy Select Sector ETF (XLE) both falling 2.4%. The Philadelphia Oil-Service Sector Index fell 3.6% while the Dow Jones US Utilities Index fell 0.6%.

West Texas Intermediate crude oil fell $2.62 to $109.78 a barrel while North Sea Brent crude also slid $2.70 to $109.23 a barrel after the Energy Information Administration said trading inventories fell 3.4 million barrels in the seven days ended May 13 compared to market expectations for a 2 million barrel increase last week. Henry Hub natural gas futures rose $0.08 to $8.38 per 1 million BTU.

In corporate news, Borr Drilling (BORR) sank 2.6%, reversing an early morning lead of 5.2%, after the company secured a binding award letter with a term of four years plus options of an anonymous operator in Southeast Asia for Borr’s Saga jack- rig. Financial terms were also not disclosed.

Vaalco Energy (EGY) fell 6.8% after the oil and natural gas producer announced on Wednesday that it had secured a five-year loan facility with Glencore Energy UK with an initial commitment of $50 million. Glencore will also market crude oil under the deal, the company said.

Sunnova Energy (NOVA) rose 2.2% after Northland Securities began covering the residential solar energy service company with an outperform rating on Wednesday.

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Steve R. Hansen