Oil stocks set for weekend as crude drops on Iran deal talk
Energy names closed out the week in a tricky spot, with oil sharply lower but the group hanging on. Brent, the global benchmark, dropped 3.37% to $87.33 a barrel by Friday’s settlement. U.S. benchmark WTI fell 3.23% to $84.88, as markets started to consider the odds of a U.S.-Iran deal. Crude’s slump usually weighs on oil producers’ cash flow and share prices, while a higher oil price can help earnings and stocks. Energy shares were steadier than oil prices. XLE finished up 0.77% at $57.55 on Friday. Exxon Mobil added 0.27%, Chevron gained 0.74%, ConocoPhillips was up 1.40%, and Occidental Petroleum advanced 1.90%. For the five days, XLE held close to its June 5 close at $57.67. Investors didn’t completely step back from energy names after the late-week crude drop.