Sector Update: Energy Stocks Plunge Amid 12% Drop in Crude Oil Prices

Last Updated: Friday, November 26, 2021 12:55 PM | MT Newswires

Energy stocks were sharply lower this afternoon, with the NYSE Energy Sector Index falling 4.6% while the SPDR Energy Select Sector ETF (XLE) was down 4.2%. The Philadelphia Oil-Service Sector index was posting a 6.0% decline and the Dow Jones US Utilities Index was sinking 1.4%.

Front-month West Texas Intermediate crude oil was sinking $9.22 to $69.17 per barrel while the global benchmark Brent crude contract also was plunging $8.45 to $73.77 per barrel. Henry Hub natural gas futures were $0.22 higher/lower at $5.29 per 1 million BTU.

In company news, Nordic American Tankers (NAT) fell 3.4% amid steeper declines for most energy companies Friday and the petroleum shipper saying Alexander Hansson, a Nordic American director and son of company founder, board chairman and CEO Herbjorn Hansson, bought 50,000 of the company's shares at $1.8564 apiece, boosting his direct stake in the company to nearly 1.04 million shares. "Uncertain times are normally good for our tankers," Alexander Hansson said in prepared remarks. The recent set-back in stock markets is a good opportunity to accumulate shares."

Valero Energy (VLO) tumbled 5.8% and the refiner saying investors have tendered around $594.5 million of its outstanding 2.700% senior notes maturing in 2023 by Wednesday's deadline and will receive $1,025.65 for each $1,000 tendered on Nov. 30, plus any accrued and unpaid interest.

Gran Tierra Energy (GTE) fell 8.6% after the Canadian oil and natural gas producer Friday disclosed plans to liquidate its entire 137.1 million-share stake in PetroTal (PTAL.L) for $30.1 million, or about $0.2198 apiece and representing a 10.8% under PetroTal's closing price Thursday on London's AIM market.

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