Energy shares rose as oil futures ended higher, supported by expectations for a weekly drop in U.S. crude inventories.
That came a day after a broad selloff attributed to jitters about the impact of a default by Chinese property giant Evergrande. "It's one of those rollercoaster days as the market ... seemed confused over how to interpret two opposing forces: the concern over the effect of China's Evergrande possible default and the tight U.S. supply signs," Nishant Bhushan, oil markets analyst at Rystad Energy, wrote in daily commentary.
In corporate news, ConocoPhillips is set to become the second-largest oil and gas producer in the contiguous U.S. following its $9.5 billion purchase of Royal Dutch Shell's assets in the Permian Basin. The company's acquisition of 225,000 net acres in West Texas is a big bet that drilling in the busiest American oil field will underpin returns for a decade. It is also the latest example of how competition to consolidate is reshuffling the pecking order among top U.S. shale drillers.
Write to Amy Pessetto at amy.pessetto@dowjones.com
(END) Dow Jones Newswires
09-21-21 1703ET
