Top Energy Stocks
Energy stocks were mostly higher Monday afternoon, with the NYSE Energy Sector Index rising more than 0.5% while shares of energy companies in the S&P 500 were up nearly 0.5% as a group. West Texas Intermediate crude oil for July delivery was ahead 42 cents to $66.16 per barrel in New York while the global benchmark Brent crude July contract was advancing 2 cents to $76.48 per barrel. July natural gas futures were 5 cents higher at $2.94 per 1 million BTU. Among energy-related ETFs, United States Oil was climbing almost 0.7% while United States Natural Gas was up nearly 1.1%. The Philadelphia oil-service sector index was down over 0.3%.
In industry news:
Oil prices have turned higher Monday afternoon, reversing initial declines that followed weekend signs the world's two largest producers are ready to boost supplies to replace supply lost to new sanctions on Iran and the near-collapse of the Venezuelan oil industry. Saudi Arabia reportedly began ramping up production last week ahead of a June 22 OPEC meeting where the cartel and Russia are expected to end production caps that have kept about 1.8 million barrels per day out of the market. There also were weekend reports Russian production has climbed to around 11.1 million barrels per day, or about 100,000 barrels above its target rate.
Among energy stocks moving on news:
+ Recon Technology, Ltd. ( RCON ) rallied Monday, at one point jumping almost 50% higher, after the Chinese oilfield-services company said Future Gas Station Technology Ltd has started a strategic cooperation agreement with JD Finance, the financial technology arm of JD.com, China's largest online direct sales company. Recon owns an 8% indirect stake in Future Gas. Under terms of the proposed pact, customers will be able to refuel their vehicles using the JD Finance application, which will be supported by the Future Gas platform and database.
In other sector news
+ Total ( TOT ) rose Monday after the French energy giant said it has secured a 25-year concession for the Tin Fouye Tabankort gas and condensate field in Algeria. Total will own a 26.4% stake in the new project, with Sonatrach carrying a 51% interest and Spanish energy major Repsol owning the remaining 22.6%. The companies have also signed a gas marketing agreement.
- Uranium Energy ( UEC ) fell almost 1% on Monday after reporting another fiscal Q3 net loss and again issuing a "going-concern" warning to investors. The uranium miner generated a $0.03 per share net loss during the three months ended April 30, unchanged from the same quarter last year and with no revenue in either quarter. Analyst estimates were not available for comparison. The company finished the February-to-April reporting period with around $7.4 million in working capital, it said, later adding there was "substantial doubt" it has enough cash and short-term investments to continue as a going concern for the next 12 months.