Oil Prices Plummet, Energy Stocks Follow Suit

Oil prices plummeted on Friday, sending energy stocks tumbling along with them. US crude (WTI) fell by 3.8% to $98.57, while Brent dropped 3.4% to $103.94. This decline had a ripple effect on major producers and energy exchange-traded funds (ETFs), putting them in the red premarket.

The United States Oil Fund, an ETF designed to track oil futures, was down by as much as WTI due to its daily marked-to-market holdings. In contrast, the Energy Select Sector SPDR ETF (XLE) was only 0.6% lower premarket because many of its component companies are 'integrated' producers that also refine and sell fuel.

This divergence highlights why stock moves can quickly become company-specific issues. Brazil's Petrobras dropped after a Reuters report said it might consider increasing diesel prices by around 1 Brazilian real, but is waiting on government measures to protect consumers. Norway's Equinor fell due to The Telegraph's suggestion that approval for the Adura joint venture's Jackdaw gas project could be delayed until after an October by-election.