Sector Update: Energy Stocks, Crude Oil Rise for Third Day in a Row

Last Updated: Wednesday, October 5, 2022 3:40 PM | MT Newswires

Energy stocks extended their Wednesday gains this afternoon, with the NYSE Energy Sector Index rising 1.9% while the SPDR Energy Select Sector ETF (XLE) was up 2.7%. The Philadelphia Oil-Service Sector index was posting a 3.7% advance but the Dow Jones US Utilities Index was slipping 1.6%.

West Texas Intermediate crude oil settled $1.24 higher at $87.76 per barrel after the Energy Information Administration Wednesday said commercial inventories fell by 1.4 million barrels during the seven days ended Sept. 30 compared with market expectations for a 2.1 million-barrel decline last week.

North Sea Brent crude also was advancing $1.64 to $93.44 per barrel after OPEC+ disclosed plans to trim production by 2 million barrels per day, while Henry Hub natural gas futures rose $0.09 to $6.93 per 1 million BTU.

In company news, Ocean Power Technologies (OPTT) added 8.4% after Wednesday announcing a new, $529,025 subcontract helping Amentum Services provide land, air, space and port and coastal surveillance services to the federal departments of Defense and Homeland Security.

Schlumberger (SLB) rose 6.6% after the energy services giant said it started a partnership at its NeoLith Energy direct lithium extraction and production facility in Nevada with privately held Gradiant, which has developed a brine-concentration method for creating battery-grade lithium compounds using significantly less fresh water than conventional processes. Financial terms were not disclosed.

ChampionX (CHX) climbed 3.1% after saying it was considering an appeal of a US International Trade Commission ruling that the company's polycrystalline diamond materials used in energy exploration and production were "patent ineligible." The company also said Tuesday's decision should have a limited impact on its finances and will likely reduce annual revenue for its drilling technologies segment by less than 3%.

Suncor Energy (SU) gained 2% after the Canadian oil and natural gas producer late Tuesday more than doubled the size of its tender offer for eight series of notes maturing between 2026 to 2042 to CA$3.6 billion ($2.65 billion) from CA$1.75 billion previously.

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