US energy stocks rally as oil surges on supply concerns
XLE•The S&P 500 energy index rose 2.1% as Brent crude gained 2.4% to $113.44 a barrel and U.S. WTI rose 2.1% to $104.18. Fears of an escalation in the U.S.-Iran conflict and a tanker attack in the Strait of Hormuz heightened supply concerns.
1. Oil prices lift energy stocks
The S&P 500 energy index rose 2.1%, tracking higher crude prices as fears of an escalation in the U.S.-Iran conflict and a tanker attack in the Strait of Hormuz heightened supply concerns. Brent crude futures gained 2.4% to $113.44 a barrel, on course to finish more than 13% higher for the month, while U.S. West Texas Intermediate futures climbed 2.1% to $104.18 a barrel, heading for a monthly gain of about 15%.
2. Company shares advance
Chevron rose 1.7%. Phillips 66 gained 3.6%, Valero Energy rose 3.4%, and Marathon Petroleum and ExxonMobil each advanced 2.8%. Baker Hughes gained 1.9%, Halliburton rose 1.1%, and ConocoPhillips, Occidental Petroleum and Diamondback Energy advanced between 1.3% and 1.9%. ExxonMobil and Chevron separately beat third-quarter profit estimates as higher refining margins boosted earnings from their fuel-making businesses.
