Energy Stocks Rise as Houthis Vow Attacks on Saudi Facilities

The NYSE Energy Sector Index gained 0.3% on Wednesday afternoon, while the State Street Energy Select Sector SPDR ETF (XLE) added 0.5%. The Philadelphia Oil Service Sector Index fell 1.8% and the Dow Jones US Utilities Index declined 0.5% during the same period.

Geopolitical tensions contributed to the sector's movement, as Reuters reported that the Iran-aligned militant group Houthis vowed to continue attacks on airports and oil facilities in Saudi Arabia. This pledge followed a strike that sources said caused extensive damage to the headquarters of Saudi Aramco.

Crude oil prices reflected the geopolitical risk, with front-month West Texas Intermediate crude rising 1.5% to $95.55 a barrel. The global benchmark Brent crude contract advanced 0.8% to $106.51 a barrel. In contrast, Henry Hub natural gas futures dropped 3.7% to $3.16 per 1 million BTU.

American Electric Power (AEP) shares rose 0.6% after the company announced it will invest approximately $4 billion in a 702-megawatt fuel cell generation project near Cheyenne, Wyoming. This investment is part of a 20-year power purchase agreement with Alphabet's Google (GOOGL).

Petrobras (PBR) shares gained 1.4% following a Tuesday announcement that the company will receive $859 million. This payment results from signing cost and volume balancing agreements with partners Shell (SHEL), TotalEnergies (TTE), and Petrogal in the BM-S-11A Consortium, relating to the Berbigao and Sururu shared reservoirs.

Equinor (EQNR) shares climbed 1% after the company stated that it and partners TotalEnergies and Petoro made an oil and gas discovery at an exploration well near the Oseberg field off the southwestern coast of Norway.

National Fuel Gas (NFG) shares fell 2.2% after the company disclosed plans to spin off its Integrated Upstream and Gathering business into an independent, publicly traded company. The tax-free transaction is expected to close in the second half of 2027.