OPEC Quashes Energy Stock Bulls' Faith as Supply Cut Wishes Fade

(Bloomberg) -- Energy bulls are full of frustration as oil prices fall amid fading hopes of a meaningful supply cut. Saudi Arabia’s energy minister said earlier that output cuts of 1 million barrels a day from OPEC and its allies were adequate enough to balance the market.

As investors await a final decision, the S&P 500 Energy Index fell as much as 3.7 percent, to the lowest intraday since September 2017. Analysts from Houston-based Tudor, Pickering, Holt & Co. said earlier the early outcome is “about as clear as mud, but we’re calling it disappointing.”

OPEC Quashes Energy Stock Bulls' Faith as Supply Cut Wishes Fade

Broader stock laggards included offshore-driller Ensco PLC which fell as much as 12 percent intraday and shale producer Cimarex Energy Co., down 8 percent. Additionally, Sanchez Energy Corp. plunged 68 percent to a record low after hiring an adviser to explore strategic alternatives.

In a bearish outcome, Cowen told clients earlier this week the firm views integrated oil, coastal refiners and some large cap E&Ps as best positioned. That list of stocks included Chevron Corp. and Anadarko Petroleum Corp.

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