-- Energy stocks were lower Tuesday afternoon, with the NYSE Energy Sector Index falling 2.5% and the State Street Energy Select Sector SPDR ETF (XLE) dropping 2.4%.
The Philadelphia Oil Service Sector Index was shedding 2.3%, and the Dow Jones US Utilities Index was decreasing 0.2%.
In sector news, optimism over the resumption of Iran peace talks sent crude oil futures sharply lower. President Donald Trump remains open to resuming in-person negotiations soon if he believes Iran is ready to submit to his demands, CNN reported, citing people familiar with the matter. He said that "something could be happening" over the next two days in Pakistan, where previous talks faltered.
Separately, the International Energy Agency on Tuesday forecast global oil demand to turn negative this year due to the Middle East conflict, penciling in the sharpest consumption decline in Q2 since the COVID-19 pandemic.
Front-month West Texas Intermediate crude oil was slumping 6.5% to $92.69 a barrel, and the global benchmark Brent crude contract was dropping 4.2% to $95.21 a barrel. Henry Hub natural gas futures fell 2.1% to $2.57 per 1 million BTU.
In corporate news, Shell (SHEL) is in late-stage talks to sell its South African retail fuel network to Abu Dhabi National Oil, Bloomberg reported. The prospective $1 billion deal includes 600 fueling locations and would secure a 10% regional market share for the buyer, the report said. Shell shares were down 1.8%.
BP (BP) said Tuesday its Q1 upstream production is expected to be "broadly flat" from the previous quarter, while cautioning that energy market volatility may pressure results and widen price fluctuations. BP shares fell 1.3%.
Bloom Energy (BE) shares jumped 21% after it said late Monday it will provide up to 2.8 gigawatts of its fuel cell systems to Oracle (ORCL) under an expanded partnership to support the software giant's AI infrastructure buildout.