Energy markets take no prisoners - stocks down 5-10% across all energy subsectors
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The energy market rout began last Thursday when, despite stable commodity markets, small-cap energy stocks sold off aggressively into the weekend.
The selloff continued Monday, as China demand fears outweighed mixed supply news over the weekend.
Early Monday, hedged oil producers like W&T (WTI) and Africa Energy (OTCPK:AOIFF) sold off 11% and 7% in early trading, un-hedged oil producers Diamondback (FANG) and Occidental (OXY) traded off ~7%, while gas-focused producers like Chesapeake (CHK) and Antero (AR) fell 5-7%, despite rising natural gas prices (NG1:COM).
Services (OIH) were sharply lower, as were refiners like Valero (VLO) and Philips (PSX); even the integrated names Exxon (XOM) and Chevron (CVX) were down 4-5% Monday.
The Energy Select Spiders (XLE) fell 12% from a week ago, with many small cap names like Tellurian (TELL), SM (SM) and Vermilion (VET) down more than 20% from last Monday's close.
With oil down 6% Monday, prices for WTI (CL1:COM) and Brent (CO1:COM) are hovering in the high 90s, ahead of Q1 earnings later this week.
Analysts are expecting strong earnings from the integrated and refining names, with improved outlooks into Q2; however, with the sector outperforming year to date, and mining stocks sinking on supply-chain and inflation headwinds last week, it appears few energy investors want to take earnings-related risk this quarter.