Shares of energy companies rallied as traders jumped back into bets on "reflation trades."
Fears that the Delta variant of Covid 19 would slam the brakes on an economic reopening worldwide weighed on the energy sector, and sent oil futures to their biggest selloff of the year so far. Oil prices rose 1.5% to just over $67 a barrel a session after falling 7.5%. Natural gas prices continue to climb, ending the session 2.6% higher at $3.88-per-million British thermal units, the highest close since late 2018, reflecting forecasts for torrid heat in Texas and the South, which have seen relatively temperate summers so far.
Royal Dutch Shell confirmed it would appeal against a Dutch court ruling calling for the oil major to reduce its carbon emissions at a faster pace, saying it was being unfairly singled out.
Oil producers are likely to show discipline on capital spending in upcoming earnings reports, despite the resurgence in oil prices, said analysts at brokerage Morgan Stanley, in a note to clients.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
07-20-21 1644ET
