Shares of energy companies gained even as U.S. benchmark oil prices ended at their lowest levels since June 1 on fears of another significant drop in global oil demand following the decision by some European countries to reinstitute lockdowns or severe restrictions to prevent the spread of coronavirus.
Data this week showing a big rise in U.S. oil inventories is also putting pressure on crude as it could signal the end of a months-long trend toward declining U.S. stockpiles.
Analysts are preparing to gauge Friday's third-quarter earnings reports from Exxon Mobil and Chevron, with the world's biggest energy companies so far this year posting some of their worst results in years. Exxon said that it would shed as much as 15% of its global work force over the next year, including 1,900 jobs in the U.S. Royal Dutch Shell reported a small profit, raised its dividend, and said it planned to increase shareholder payouts, offering an upbeat assessment of its ability to weather the pandemic-inspired demand shock that has kept oil prices weak.
Natural gas prices continued to notch fresh, 21-month-highs, as a bullish weekly EIA storage report showed a smaller-than-expected increase in inventories last week.
Write to Amy Pessetto at amy.pessetto@dowjones.com
(END) Dow Jones Newswires
10-29-20 1719ET
