⚡️Energy Sector Slumps as XLE and USO Drop on Saudi Output Rumors, While Exxon, Chevron, and Diamondback Face Pressure | Energy Sector Insights
Key contributors to this performance include Exxon Mobil Corp, which announced a $10 billion investment in offshore oil operations in Nigeria, and Chevron Corp, which eased regulatory concerns regarding its merger process.
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Thursday, September 26
XLE [-1.8%]
The Energy Select Sector SPDR Fund (XLE) has seen a decline of 1.8% since Wednesday, influenced by significant movements among its holdings. Key contributors to this performance include Exxon Mobil Corp, which announced a $10 billion investment in offshore oil operations in Nigeria, and Chevron Corp, which eased regulatory concerns regarding its merger process. Additionally, Diamondback Energy experienced a notable stock price drop ahead of its earnings release. Broader market trends have also played a role; the energy sector was one of the few declining groups within the S&P, with a reported decrease of 1.4% in premarket trading. Oil prices fell over 2% amid rumors of increased output from Saudi Arabia, while Brent crude prices dropped by nearly 2%. These factors collectively reflect a continuation of negative sentiment within the energy sector.