Energy stocks shell shocked, succumbing to broader market swoon

oil pumps on sunset

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Oil and gas equities plunged Monday, with the S&P energy sector (NYSEARCA:XLE) tumbling to the bottom of the day's standings, as crude oil futures fall ~5% from pressure on multiple fronts.

June WTI crude (CL1:COM) -5.1% to $104.20/bbl, and July Brent crude (CO1:COM) -4.7% to 107.04/bbl.

ETFs: (XLE), (XOP), (VDE), (OIH)

Marathon Oil (MRO) leads the losers among E&P names, -10%, while other notable decliners include APA (APA) -8.6%, EOG Resources (EOG) -8.4%, Coterra Energy (CTRA) -8.1%, Devon Energy (DVN) -8%, Occidental Petroleum (OXY) -7.5%, Pioneer Natural Resources (PXD) -6.9%, Exxon Mobil (XOM) -5.8%, Chevron (CVX) -5%, Shell (SHEL) -4.4%.

Some of the worst performers among oilfield services stocks are Nabors Industries (NBR) -12%, Liberty Engergy (LBRT) -10.5%, Patterson-UTI (PTEN) -10.1%, Transocean (RIG) -8.8%, Golar LNG (GLNG) -8.3%, Schlumberger (SLB) -7.4%, Halliburton (HAL) -6.9%.

Energy tanker and transportation stocks deeply in the red Monday include Tsakos Energy Navigation (TNP) -12.7%, Nordic American Tankers (NAT) -10.9%, Frontline (FRO) -9.6%, Teekay Tankers (TNK) -9.2%, DHT Holdings (DHT) -8.3%, Scorpio Tankers (STNG) -8.3%, International Seaways (INSW) -7.8%.

The European Union looks set to weaken its sanctions package on Russia, Saudi Arabia cut its prices in a sign of waning demand in China, and the stock market is falling broadly over concerns about the extent of Federal Reserve rate hikes that may be needed to blunt inflation.

Crude oil will remain "rangebound because there's still not enough supply for the market currently. Barring a major COVID-19 spread, a supply shortfall will still exist," Rohan Reddy, director of research at Global X Management, told Bloomberg.

The oil and gas sector surged 10.2% last week as crude oil climbed to $110/bbl.

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