Sector Update: Energy Stocks Rise in Wednesday Afternoon Trading

01:52 PM EDT, 08/21/2024 (MT Newswires) -- Energy stocks advanced Wednesday afternoon, with the NYSE Energy Sector Index and the Energy Select Sector SPDR Fund (XLE) each adding 0.2%.

The Philadelphia Oil Service Sector index was posting a 0.5% increase, and the Dow Jones US Utilities index rose 0.7%.

US crude oil stocks, including those in the Strategic Petroleum Reserve, fell by 4 million barrels in the week ended Aug. 16 following an increase of 2.1 million barrels in the previous week. Excluding inventories in the SPR, commercial crude oil stocks fell by 4.6 million barrels after a 1.4-million-barrel gain in the previous week, a larger drop than the 2.2-million-barrel decrease expected in a survey compiled by Bloomberg.

Front-month West Texas Intermediate crude oil was declining 0.4% to $74.04 a barrel while the global benchmark Brent crude contract was dropping 1.5% to $76.05 a barrel. Henry Hub natural gas futures fell 2.1% to $2.15 per 1 million BTU.

In corporate news, Arch Resources (ARCH) and Consol Energy (CEIX) said Wednesday they have agreed to a merger of equals in an all-stock deal to create a new company called Core Natural Resources. Arch shares rose 1% and Consol popped 3.5%.

An Enterprise Products Partners (EPD) affiliate has agreed to buy Pinon Midstream for $950 million in a debt-free cash deal. Enterprise Products Partners shares were easing 0.2%.

South Africa's Advertising Regulatory Board said a TotalEnergies (TTE) ad related to the company's support of South African National Parks had a "misleading" claim related to the company's commitment to sustainable development. TotalEnergies shares were adding 0.4%.