
Energy stocks fall with oil as U.S. weighs release
BNN Bloomberg
Energy stocks dropped with oil prices as investors weighed reports that the Biden administration is considering a massive release of crude from U.S. reserves to fight inflation.
Energy stocks dropped with oil prices as investors weighed reports that the Biden administration is considering a massive release of crude from U.S. reserves to fight inflation.
Shares in big U.S. energy companies declined in premarket trading, while index futures pared an advance, Treasuries held gains and the dollar ticked up. Russian equities advanced as the nation partly lifted the short-selling ban on local stocks on Thursday, removing one of the measures that helped limit the declines in the market after a record long shutdown.
Reports that Washington is preparing a plan to release roughly a million barrels of oil a day helped reverse a rebound in crude ahead of an OPEC+ supply meeting, where the cartel is expected to stick with its strategy of a modest output boost in May. French inflation accelerated more than expected to reach another record, following unexpectedly high readings on Wednesday from Germany and Spain.
Officials from Ukraine and Russia are set to resume talks via video conference on Friday, according to a Ukrainian negotiator, though there was no immediate confirmation from Moscow.
Shares in oil companies including Exxon Mobil Corp. and Occidental Petroleum Corp. declined in premarket trading. Brent and West Texas Intermediate prices dropped about 6 per cent, while European natural gas fell as top consumer Germany signaled Russia is softening its demand for ruble payments.
U.S.-listed Chinese stocks are heading for a lower open after Securities and Exchange Commission Chair Gary Gensler dialed down prospects of an imminent deal to allow Chinese firms to keep trading on American exchanges.