Energy Stocks Plummet as Oil Prices Fall

Energy stocks took a hit on Friday afternoon, with several key indices declining. The NYSE Energy Sector Index decreased by 0.6%, while the State Street Energy Select Sector SPDR ETF (XLE) fell 0.2%. Meanwhile, the Philadelphia Oil Service Sector Index dropped by 0.8%, and the Dow Jones US Utilities Index shed 1.1%.

The prices of West Texas Intermediate crude oil and Brent crude contract also declined, falling by 1% to $100.86 a barrel and 1.1% to $103.66 a barrel respectively. However, Henry Hub natural gas futures increased by 0.3% to $2.91 per 1 million BTU.

Industry news suggested that European refiners may not receive any crude oil allocations next month following an attack on Saudi Arabia's main pipeline to the Red Sea, according to Bloomberg. In corporate developments, TotalEnergies partnered with Global Infrastructure Partners to manage its African oil and gas infrastructure assets, while BP sold a 5% stake in the Browse liquefied natural gas project in Western Australia.

Equinor signed a long-term agreement with PTT Trading to supply liquefied natural gas, while Ecopetrol appointed new board members. Petrobras' unit Petrobras Netherlands secured production sharing contracts for eight offshore exploration blocks in Cote d'Ivoire.