Energy stocks fell sharply this afternoon, with the NYSE Energy Sector Index and the SPDR Energy Select Sector ETF (XLE) both falling 2.5%. The Philadelphia Oil-Service Sector Index was also down 3.0% and the Dow Jones US Utilities Index was down 0.8%.
First-month West Texas Intermediate crude rose $0.89 to $93.99 a barrel, while global benchmark Brent crude also rose $0.53 to $94.97 a barrel. Henry Hub natural gas futures rose $0.20 to $4.14 per 1 million BTU.
In company news, SM Energy (SM) slid 5.3% as the oil and natural gas producer plans to use available cash to buy back all of its $104.8 million from its outstanding 5.0% senior notes due 2024 plus accrued interest.
Scorpio Tankers (STNG) fell 3.6% after reporting a 7.1% increase in fourth-quarter revenue from year-ago levels to $147.9 million, but still lagged Capital IQ’s consensus expects $148.2 million in revenue for the three months ended Dec. 31.
Transocean (RIG) fell 2.4%, returning a nearly 1% gain earlier on Monday, after it said it was awarded new single-well contracts for four of its deepwater drilling rigs in the Gulf of Mexico and the British North Sea at a price between $160,000 and $335,000. per day while another rig was awarded a two-well contract in the Gulf of Mexico at a price of $395,000 per day.