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Sector Update: Energy Shares Broadly Lower; Crude Futures Plunge Into the Close

NYMEX Benchmark Crude September: (-5.9%) to $82.38

Top Energy Stocks

XOM: -4.3%

CVX: -4.5%

COP: -4.3%

SLB: -6.2%

OXY: -5.9%

Energy shares are broadly lower in late trading as crude oil futures plunge into the close, finishing down nearly 6% for the day.

Light, sweet crude oil for September delivery finished down 5.9% to $82.38 a barrel. In other energy futures, heating oil was down 2.61% to $2.88 a gallon while natural gas was down 1.22% to $3.88 per million British thermal units.

In energy ETFs, the United States Oil Fund ( USO ) is down 5.94% to $34.06. The United States Natural Gas ETF ( UNG ) is down 0.7% at $9.87.

In late-session energy news, Valero Energy ( VLO ) is down after it says it is in the process of restarting units at its Memphis refinery, which was shut down on Aug. 5 due to a fire in a crude distillation unit.

The restart will begin with one of the crude distillation units, FCC, and other key units. The other crude distillation unit is expected to be restarted by September.

As a result, it lowered its Q3 operating guidance with its refinery throughput volumes now estimated in the range of 370,000 to 380,000 barrels per day in the Mid-Continent region, which is down from the original estimate of 420,00

to 430,000 barrels per day.

Also, VLO now expects its system-wide refinery operating expenses to be $4.05 per barrel in the third quarter, which is above the original estimate of $3.80 per barrel.

Valero shares are down 8.2% to $19.22.

Meanwhile, shares of Exxon Mobil ( XOM ) are down along with the broader market while Reuters reports the oil major sued the government to reverse a move by the U.S. Department of the Interior to cancel offshore oil and gas leases.

Exxon argued in a a suit filed in federal court in Louisiana that the decision deprives the company of its rights under three of five leases.

Exxon shares are down 4.29%, or $3.18, to $70.98.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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