Energy Sector Update for 07/20/2020: NBL, HAL, CEO, XLE, USO, UNG
Energy stocks were flat to lower premarket Monday with the Energy Select Sector SPDR (XLE) flat in recent trading. The United States Oil Fund (USO) was 0.58% lower and the United States Natural Gas Fund (UNG) was down more than 1%.
The West Texas Intermediate crude oil was down $0.26 to $40.33 per barrel at the New York Mercantile Exchange. The global benchmark Brent crude lost $0.30 to $42.84 per barrel and the natural gas futures were 2 cents lower at $1.70 per 1 million BTU.
Noble Energy (NBL) was gaining more than 9% after Chevron (CVX) said it plans to acquire the hydrocarbon exploration company in an all-stock transaction that values Noble Energy at $5 billion. Chevron was marginally higher recently.
Halliburton (HAL) also rose more than 5% after posting Q2 adjusted earnings Monday of $0.05 per diluted share, down from $0.31 a year ago. That result topped the average forecast of a loss of $0.12 per share from analysts polled by Capital IQ.
In other sector news, CNOOC (CEO) said it has started production at the Luda 21-2/16-3 regional development project located in Liaodong Bay of China's Bohai Sea. Shares of the company were flat during premarket trading.
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