Top Energy Stocks
Energy stocks were falling hard Monday, with the NYSE Energy Sector Index falling almost 1.6% while shares of energy companies in the S&P 500 were down over 1.3% as a group. West Texas Intermediate crude oil for August delivery was plunging $2.92 per share, or 4.1%, to $68.09 per barrel at the New York Mercantile Exchange while the global benchmark Brent crude September contract was declining $3.10 to $72.23 per barrel. August natural gas futures were 1 cent higher at $2.77 per 1 million BTU. Among energy-related ETFs, United States Oil was sinking nearly 3.7% while United States Natural Gas was slipping just 0.1%. The Philadelphia Oil Service Sector index was sliding more than 2.0% lower.
In industry news:
Crude oil continued its slump Monday, dropping almost 4% to match last week's decline, after 850,000 barrels of daily production returned to the global market when Libya put down a dispute over control of the country's oil ports. Also, US President Donald Trump said the United States may release supply from the Strategic Petroleum Reserve in a bid to drive down gasoline prices for consumers while Russian oil minister Alexander Novak late last week suggested his country - together with OPEC - similarly could boost output in order to check the recent rise of oil prices .
Among energy stocks moving on news:
- CUI Global ( CUI ) was falling Monday, sliding almost 1% in recent trading after giving back a slim gain soon after the opening bell that followed the company saying its Orbital Gas Systems Ltd subsidiary has secured a contract from an unnamed UK-based natural gas operator. The contract is valued at GBP500,000, or about $660,000, and calls on Orbital Gas to provide its large scale, biomethane metering skids, including its proprietary GasPT analyzer and VE Technology sample probe. The current contract is for the first of several skids anticipated to be delivered to the customer.
In other sector news
+ Tidewater ( TDW ) was extending its Monday advance, climbing over 5%, after announcing a $340 million buyout of GulfMark ( GLF ), paying about $33.68 per share in stock for the rival offshore drilling support company. Under terms of the proposed merger, GulfMark investors will receive 1.1 of a Tidewater share for each share they now own, representing a 1.1% discount to GulfMark's closing price on Friday. Tidewater also will repay $100 million of GulfMark debt as the deal closes, expected during the final three months of 2018. Tidewater CEO John Rynd will lead the the combined companies, which will have the industry's largest support fleet and operate the Tidewater brand. The Tidewater board will expand to 10 seats after the transaction closes with the addition of three directors selected by GulfMark. GulfMark shares were up almost 2%.
- Core Laboratories NV ( CLB ) declined Monday, slipping over 1%, after the petroleum reservoir and production enhancement company late Friday declared a $0.55 per share Q3 dividend, unchanged from its Q2 distribution to investors. The company dividend is payable Aug. 13 to shareholders of record on July 23.