Oil companies fall on broader market weakness

Callon Petroleum Co

06/11/2023 20:00

** Shares of oil and gas companies dip despite a rise in oil
prices
    ** Oil majors Exxon Mobil  XOM.N  and Chevron  CVX.N  fall
~1.6% and ~0.4%, respectively
    ** Brent crude  LCOc1  rises 0.5% to $85.31/bbl and West
Texas Intermediate crude  CLc1  up 0.6% at $80.92/bbl
    ** Scott Hanold, analyst at RBC Capital Markets, attributes
the fall in energy stocks to "mostly broad market macro when
considering last week's slowing economic data, which is
typically bearish for cyclical stocks"
    ** U.S. payrolls report on Friday and upbeat productivity
numbers suggested American labor market was cooling enough for
the Federal Reserve to halt the need for further rate increases
 US/ 
    ** "Worth noting that energy stock last week outperformed
oil, so a bit of a reversal" - Hanold
     ** Oil and gas producers ConocoPhillips  COP.N , Occidental
Petroleum  OXY.N , Callon Petroleum  CPE.N  and Marathon Oil
 MRO.N  down between 5.4% and 1%
    ** Oilfield services companies like SLB  SLB.N  and
Halliburton  HAL.N  down between ~4.6% and 1.2% 
    ** Oil and gas refiners PBF Energy  PBF.N , Valero Energy
 VLO.N  and Phillips 66  PSX.N  fall 2.5% to 0.2%
    ** Saudi Arabia and Russia reaffirmed commitment to extra
voluntary oil supply cuts until the end of the year  O/R   

    

 (Reporting by Seher Dareen in Bengaluru)
 ((Seher.Dareen@thomsonreuters.com;))