After finishing at the top of the S&P sector leaderboard on Monday, the energy group (NYSEARCA:XLE) is Tuesday’s biggest loser by a wide margin as crude oil futures flopped by more than 5%, with news reports easing some concerns over tight supplies.
Front-month Nymex crude oil (CL1:COM) for October delivery settled -5.5% to $91.64/bbl, ICE October Brent crude (CO1:COM) also closed -5.5% to $99.31/bbl, Nymex natural gas (NG1:COM) for October ended -3.1% at $9.0420/MMBtu, and Nymex RBOB gasoline (XB1:COM) for September delivery closed -6.3% to $2.6944/gal.
Broad losses throughout the sector narrowed the group’s August gain to 3%, compared to a 3.3% loss on the S&P 500 so far this month.
A source in one of the OPEC+ delegations told Russian news agency TASS that the cartel was not currently discussing the possibility of oil production cuts, which Price Futures Group’s Phil Flynn said was contributing to pressure on oil prices, MarketWatch reported.
Oil prices rose last week after Saudi Arabia’s energy minister said OPEC+ could consider production cuts.
Iraq’s state marketing company said exports have not been affected by violent clashes in Baghdad, according to Bloomberg, which also said low liquidity was exacerbating today’s price moves.
Natural gas fell as the European Union is set to meet its gas storage filling goal two months ahead of plans despite Russian supply cuts, and the European Union is preparing to intervene in energy markets to slow surging power costs.