Energy Stocks Edge Lower in Pre-Market Trade

Energy shares were mostly lower, as the approach of tropical storm Nate put pressure on stocks. The storm is due to hit the Gulf Coast over the weekend. The Bureau of Safety and Environmental Enforcement said late Thursday that Gulf oil production of 254,607 barrels of oil a day has been shut in as oil and natural-gas operators in the Gulf of Mexico evacuated platforms and rigs ahead of the storm.

Light, sweet crude oil for November delivery was down 2.1% at $49.76 per barrel. In other energy futures, heating oil was down 1% at $1.77 per gallon while natural gas was down 0.9% at $2.90 per 1 million British thermal units.

In energy ETFs, the United States Oil Fund (USO) was down 2.2% at $10.03 while the United States Natural Gas ETF (UNG) was down 0.2% at $6.31.

In energy sector news, Switzerland-based Glencore plc said that it has agreed to buy a 75% stake in Chevron (CVX) South Africa Proprietary Limited and certain other related interests plus the issued capital of Chevron Botswana Proprietary Limited from Off The Shelf Investments Fifty Six for $973 million. The assets include interests of the Chevron Group in its manufacturing, retail and industry supply business in South Africa and Botswana. The transaction is expected to close in mid-2018, subject to regulatory approvals. CVX shares were down 0.2%.

In other sector news,

(-) CRZO (-0.6%) To sell Marcellus assets For $84 million; Appalachian sales seen closing in Q4