Top Energy Stocks
Energy stocks were sharply lower, with the NYSE Energy Sector Index falling over 3.4% while shares of energy companies in the S&P 500 were down almost 3.8% as a group. West Texas Intermediate crude oil for September delivery was slipping $2.71 to $54.39 per barrel after commercial inventories unexpectedly grew last week, while the global benchmark Brent crude October contract was declining $2.62 to $58.68 per barrel. September natural gas futures were 1 cent lower at $2.14 per 1 million BTU. Among energy-related ETFs, the United States Oil fund was falling nearly 4.8% while the United States Natural Gas fund was dropping just under 0.6%. The Philadelphia Oil Service Sector index was sinking 5.5%.
In industry news:
US commercial crude oil supplies unexpectedly grew last week, rising by 1.58 million barrels during the seven days ended August 9, according to weekly inventory data by the US Energy Information Administration. That compares with forecasts by industry experts compiled by S&P Global Platts expecting a 2.8 million-barrel draw last week while the American Petroleum Institute Tuesday night reported a surprise inventory build of 3.7 million barrels.
Among energy stocks moving on news:
(-) Kinder Morgan (KMI) was 3% lower after announcing $170 million in new capital projects intended to increase efficiency, add product liquidity and boost blending capacity for the petroleum infrastructure company at its Pasadena and Galena Park terminals on the Houston ship channel. The improvements are expected to be completed by the end of 2020 and are being supported by a long-term agreement with a major refiner for around 2 million barrels of storage capacity at its Pasadena terminal and a long-term agreement with an investment grade midstream company at Galena Park.
In other sector news:
(+) Gevo (GEVO) was 1% higher this afternoon, giving back most of a 13% gain soon after Wednesday's opening bell that followed the bio-fuels company announcing a new partnership agreement with Air TOTAL International to produce and supply sustainable aviation fuel for use and distribution in France and other parts of Europe. Gevo will initially supply Air TOTAL from its facility in Silsbee, Texas, and later from its plant in Luverne, Minn., that's slated for construction over the next several years.
(-) Obsidian Energy (OBE) slumped Wednesday, falling 4%, after reporting a Q2 net loss of CAD2.22 per share, expanding on a CAD1.33 per share loss during the same quarter last year.
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