Sector Update: Energy Stocks Fall Late Afternoon

03:57 PM EST, 11/04/2026 (MT Newswires) -- Energy stocks were lower late Wednesday afternoon, with the NYSE Energy Sector Index falling 4.7% and the State Street Energy Select Sector SPDR ETF (XLE) dropping 5.2%. The Philadelphia Oil Service Sector Index was decreasing 3.5%, and the Dow Jones US Utilities Index was up 0.4%. In geopolitical news, a US-Iran peace deal looks more likely following the Democratic Party's decisive victory in the American midterm elections, potentially helping end the conflict that has disrupted global energy markets this year, Rystad Energy said. Rystad called the Democratic sweep the "most consequential" midterm result for US energy policy in 20 years and said it changes the political cost of continuing the war with Iran, boosting the odds of a deal instead. Front-month West Texas Intermediate crude oil fell 7.6% to $88.75 a barrel, and the global benchmark Brent crude contract slumped 7.9% to $95.39 a barrel. Henry Hub natural gas futures rose 2.1% to $2.96 per 1 million BTU. In sector news, European renewables developers with US exposure are expected to benefit from the Democrats' sweeping victory in the US midterm elections as concerns around US regulatory risks appear manageable, Morningstar said in a note. President Donald Trump's administration has pursued policies hostile to renewable energy, accelerating the phaseout of federal tax credits and repeatedly trying to halt offshore wind projects under construction, the investment firm said. Lawmakers agreed in principle on Sept. 30 on bipartisan permitting reform, and Democrats could use their victory to demand stronger protections for renewables in exchange for supporting the reforms Republicans favor to speed up gas-fired generation and transmission, Morningstar said. Separately, US crude oil stocks, including those in the Strategic Petroleum Reserve, fell by 1.3 million barrels in the week ended Oct. 30 following a decrease of 2.0 million barrels in the previous week. Excluding inventories in the SPR, commercial crude oil stocks decreased by 900,000 barrels after a 1.9-million barrel decline in the previous week, a smaller decline than the 1.7-million-barrel decrease expected in a survey compiled by Bloomberg. In corporate news, Vistra (VST) shares fell past 13% after KeyBanc downgraded the Texas-based energy company to sector weight from overweight. Peabody Energy (BTU) shares dropped past 17% after it reported a Q3 loss Wednesday of $0.27 per diluted share, narrowing from a loss of $0.57 a year earlier. Analysts surveyed by FactSet expected a loss of $0.05 per share. Revenue was $1.10 billion, up from $1.01 billion a year earlier. Analysts expected $1.03 billion. Vermilion Energy (VET) shares slumped over 12% after the company reported a wider Q3 loss. Cenovus Energy (CVE) shares declined past 8% even after it posted higher Q3 earnings and revenue.