Top Energy Stocks
Energy stocks were drifting lower Wednesday afternoon, with the NYSE Energy Sector Index falling just over 0.2% while shares of energy companies in the S&P 500 were down nearly 0.3% as a group. West Texas Intermediate crude oil for July delivery was ahead 19 cents at $66.55 per barrel in New York while the global benchmark Brent crude August contract was advancing 49 cents to $76.37 per barrel. July natural gas futures were 3 cents higher at $2.97 per 1 million BTU. Among energy-related ETFs, United States Oil was climbing more than 0.6% while United States Natural Gas was rising over 1.0%. The Philadelphia oil-service sector index was falling more than 0.7%.
In industry news:
US crude oil inventories fell by 4.1 million barrels to $432.4 million barrels during the seven days ended June 8, the Energy Information Administration said. That compares with a 2.1-million-barrel build during the prior week and was significantly larger than the 2.6-million-barrel decline industry experts polled by S&P Global Platts were expecting. The American Petroleum Institute late Tuesday reported an increase of 833,000 barrels during the same week ended June 8.
Among energy stocks moving on news:
- Phillips 66 ( PSX ) has turned lower in recent Wednesday trading, giving back a narrow gain soon after the opening bell that followed the refinery and logistics company saying it was moving ahead with a $1.5 billion expansion of its Sweeny Hub in Old Ocean, Texas. The project includes two new natural gas liquids fractionators with a capacity of 150,000 barrels per day each as well as additional storage and pipeline infrastructure. The expanded facility should be ready for commercial operations by late 2020. Phillips also said it has signed a supply agreement for Y-grade feedstock with DCP Midstream LP ( DCP ), which received an option to acquire up to 30% ownership of the fractionators.
In other sector news
- NexGen Energy (NXE,NXE.TO) declined Wednesday, sliding as much as 3% lower, despite the uranium miner saying a pre-feasibility study at its Rook I project in Saskatchewan's Athabasca Basin demonstrated high-purity yellowcake product meeting or surpassing industry standards can be produced by using peroxide and magnesium oxide. The company also said it was close to completing final preparations and expects to begin its summer drilling program soon.
- USA Compression Partners LP ( USAC ) dropped as much as 10% on Wednesday after the oilfield-services company late Tuesday priced a secondary offering of 5 million common equity units for gross proceeds of about $81.0 million before offering expenses. The offering is scheduled to close June 15.