Welcome to the MarketReader Energy Minute.

Below are AI-generated insights on moves in the energy sector, powered by MarketReader technology.

Monday, July 22

XLE [-0.4%]
The Energy Select Sector SPDR Fund (XLE) dropped by -0.3% following a -0.83% decrease in Oil (WTI) prices, reflecting their historical correlation. Among the ETF's holdings, ConocoPhillips, Exxon Mobil, Chevron, Occidental Petroleum, and EOG Resources experienced notable negative returns, with price targets adjusted downwards by Truist Securities analysts. Additionally, news of China cutting interest rates, potential U.S. interest rate cuts, and geopolitical developments influenced oil prices positively, contrasting the performance of technology and communication sectors. This mixed market sentiment likely contributed to XLE's movement today amidst ongoing sector-specific adjustments and global economic dynamics.

USO [-0.8%]

The United States Oil Fund LP experienced a -1.1% change, coinciding with NY Crude dropping 0.1% to US$80.05. Asian trade saw oil prices rise as China cut interest rates, impacting economic conditions and potentially oil demand. Market dynamics, including China's economic stimulus efforts and Israel-Hamas ceasefire talks, likely influenced the decline in the fund.

BOIL [+10.1%]
ProShares Ultra Bloomberg Natural Gas is up +9.6% since Friday's close, mirroring the 5.7% rise in Natural Gas (XNG/USD) prices today. This increase aligns with a 5% climb in natural gas futures, driven by the Chicago Fed National Activity Index signaling a slowdown in economic growth for June. The potential rise in demand for natural gas due to concerns about reduced economic activity appears to be boosting prices across the sector, coinciding with the broader market movement.

CVX | $157.92 | -0.7% | -2.2B

XOM | $115.60 | -0.4% | -2.1B

COP | $112.52 | -1.6% | -2.1B

OXY | -1.8% | -1.0B
Occidental Petroleum Corp's stock price decreased today. Truist adjusted the price target to $67 from $69, with analysts maintaining an average hold rating. Occidental is in discussions with Ecopetrol for a potential acquisition of a thirty percent interest in CrownRock assets for around $3.6B. Stephens analyst Mike Scialla lowered the price target to $76 from $77 while keeping an Overweight rating. These factors may have influenced the stock's movement, coinciding with the broader underperformance within the sector.

HAL | -2.1% | -624.1M
Halliburton Co's stock price dropped 1.6% after reporting Q2 revenue below expectations, with revenue at $5.833 billion versus a consensus of $5.949 billion. International revenue rose by 3%, driven by strong demand in major basins. Analysts adjusted ratings due to a tempered 2024 outlook for both International and North America, expressing concerns about growth deceleration in 2025. The company's lowered North America revenue guidance, anticipating a decline of 6-8% for FY24, added pressure on the stock. Halliburton Co is underperforming its sector peers amid these developments.

COP | -1.5% | -2.0B
Truist Securities reduced ConocoPhillips' price target from $165.00 to $147.00 while maintaining a Buy rating, potentially influencing the -1.2% price movement post-market close. This adjustment, made by analyst Neal Dingmann, coincided with a similar -1.65% movement in Occidental Petroleum Corp (OXY) following discussions with Ecopetrol for a possible acquisition, which may have contributed to ConocoPhillips' price drop.

VAL | +3.7% | +213.3M
Valaris Ltd's stock price rose by 4.3% following a $498 million multi-year contract award for its drillship VALARIS DS-17 from Equinor Energy do Brasil Ltda. The contract, spanning 852 days with a 672-day drilling program starting in the first half of 2026 offshore Brazil on Project Raia, underscores Valaris' strategic efforts to secure contracts at higher day rates, hinting at future earnings and cash flow growth. This positive news coincides with Valaris outperforming its sector peers and moving higher alongside the broader market.

TRP | +1.0% | +440.2M
TC Energy Corp has increased by 0.9% since Friday's close, with no specific news driving the price movement. Analyst sentiment remains cautious, with a balanced perspective of six analysts rating the stock as a hold and five as a buy. The company reported earnings exceeding expectations and maintains a robust quarterly dividend yield of 6.81%, albeit with a high payout ratio of 147.69%. TRP operates a significant energy infrastructure network spanning 93,600 kilometers of natural gas pipelines across North America.

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