Top Energy Stocks
Energy stocks pared a large portion of their prior declines on Monday, with the NYSE Energy index falling about 0.3% in late trade while the shares of energy companies in the S&P 500 were down less than 0.1% as a group. West Texas Intermediate crude oil for November delivery settled 5 cents lower at $74.29 per barrel at the New York Mercantile Exchange while the global benchmark Brent crude December contract declined 41 cents to $83.75 per barrel. November natural gas futures soared again, rising 12 cents higher to $3.27 per 1 million BTU, earlier riding a 15-cent rise. Among energy-related ETFs, United States Oil fell over 0.1% while United States Natural Gas soared nearly 3.6% higher in wake of another sharp jump in natural gas prices today. The Philadelphia Oil Services index rose over 0.7% this afternoon, reversing an early decline.
Among energy stocks moving on news:
(-) Eni SpA ( E ) was nearly 3% lower in late Monday trading, climbing slightly from a nearly 4% session low that followed the Italian energy major signing a letter of intent to acquire half of BP's ( BP ) exploration and product sharing agreement in Libya for an undisclosed amount, aiming to restart explorations activities next year, Eni said Monday. If they can finalize the deal, Eni and BP would own equal 42.5% stakes in the concession, with Eni becoming the contractual operator and the Libyan Investment Authority continuing to own the remaining 15%.
In other sector news
(+) Pacific Ethanol ( PEIX ) climbed nearly 50% on Monday following reports U.S. President Donald Trump is ready to lift a federal ban on summer sales of higher-ethanol blends of gasoline in a bid to support Republicans in farm-belt states running for re-election. The decision likely will be announced on Tuesday, according to Reuters, citing two sources familiar with the matter.
(+) Petrobras' ( PBR ) American depository shares jumped as much as 13% higher after analysts at Bank of America Merrill Lynch Monday raised their investment rating for the state-owned energy major more formally known as Petroleo Brasileiro to Buy from Neutral in the wake of national and state elections in Brazil this weekend. Far-right populist Jair Bolsonaro of the Social Liberal party led all challengers in the first round of presidential voting with 46.9% of the vote, just shy of the outright majority he needed to avoid a run-off with second-place finisher, Fernando Haddad of the leftist Workers' party, who has supported with 28% of the votes cast.
(-) W&T Offshore ( WTI ) dropped over 7% on Monday after the oil and natural gas producer with operations in the Gulf of Mexico late Friday priced a $625 million private placement of 9.75% senior second-lien notes due 2023 at par. Net proceeds will be used to pay down a portion of the company's debt securities, including its 11.00% 1.5-lien and 9.00% second-lien term loans.