• 4 minutes Your idea of oil/gas prices next ten years
  • 7 minutes WTI Heading for $60
  • 13 minutes Could EVs Become Cheaper than ICE Cars by 2023?
  • 35 mins Pros and Cons of Coal
  • 3 hours Why does US never need to have an oil production cut?
  • 2 days Pence says South China Sea Doesn't Belong To Any One Nation
  • 2 days Anyone holding Nvidia stock?
  • 9 hours Is California becoming a National Security Risk to the U.S.?
  • 4 hours US continues imports of Russian gas which it insists Europe should stop buying
  • 2 days Germany Discusses Lifting Ban on Deporting Syrians
  • 11 hours Regular Gas dropped to $2.21 per gallon today
  • 5 hours Warren Buffett
  • 1 hour And Just Like That, Everybody Stopped Talking About $100 Oil
  • 24 hours Trump administration slaps sanctions on Saudis over Khashoggi's death
  • 3 days I Believe I Can Fly: Proposed U.S. Space Force Budget Could Be Less Than $5 Billion
  • 2 days China Claims To Have Successfully Developed a Quantum Radar That Can Detect 'Invisible' Fighter Jets
Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Energy Stocks Face Two Days Of Tough Sell-Offs

red stock market chart

A second day of low growth for energy stocks marks the sector’s worst Wall Street performance in 2.5 years, according to a new report by CNBC. The news comes as the Dow Jones industrial average fell by 1,175 points on Monday in a drastic market correction.

Energy companies in the S&P 500 dropped 4.4 percent on Monday. Chesapeake Energy, which recently announced layoffs, affected 13 percent of its entire staff, led the pack. The drilling firm Hess, as well as Exxon Mobil and Chevron, saw declines as well due to a continuing sell-off. Hess had just announced larger than expected losses for the last quarter of 2017. Exxon and Chevron disappointed expectations as well.

"Earnings were significantly weaker than expected," said Rob Thummel, portfolio manager at Tortoise Capital Advisors, referring to Exxon and Chevron. "That's what's really driven the S&P energy stocks off more significantly. "I think it's just a clear indicator that people don't believe the oil price, [because] they think it's coming down."

Still, oil price projections are uniformly rosy, compared to current levels. Goldman Sachs beat all other investment banks in their forecasts for the price of Brent crude this year, setting its project at $75 per barrel for the full year. JP Morgan came in second, setting its projection at $70 a barrel. The third most bullish forecast on Brent is from Bank of America at US$64 a barrel.

Related: Will Rising Crude Inventories End The Rally?

The last time declines were this bad was in August 2015, when energy stocks fell 8.5 percent. Since Friday, the Brent and West Texas Intermediate (WTI) barrels lost $2, or 3 percent in value.

"Want to get more positive on HES given world-class Guyana asset ..., but can't point to much that warrants upgrade from Underweight," Capital One analyst Phillips Johnston said in a note on Monday.

Colorado oil and gas stocks have been lagging the rest of the energy market this year as safety regulations get tougher. Last spring, two sites run by Anadarko Petroleum exploded, killing three people. That has raised the specter of tighter regulations to improve safety.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Mamdouh G Salameh on February 06 2018 said:
    Oil prices don’t exist in isolation. They are affected by turmoil in the global markets like everything else. Portfolio managers and analysts make a huge mistake if they start writing the oil prices off.

    The oil prices are underpinned by the most positive fundamentals in the global oil market since 2014. That is why they will resume their surge upwards once the turmoil subsides unless the Wall Street bubble bursts with adverse implications for the global economy as in 2008.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London
  • Bill Simpson on February 06 2018 said:
    The stock market will be back up within a week, as will the oil price.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
-->