Sector Update: Energy Stocks Decline Late Afternoon

04:00 PM EST, 11/02/2026 (MT Newswires) -- Energy stocks were lower late Monday afternoon, with the NYSE Energy Sector Index falling 3.5% and the State Street Energy Select Sector SPDR ETF (XLE) dropping 3.6%. The Philadelphia Oil Service Sector Index was shedding 5%, and the Dow Jones US Utilities Index was up 0.3%. In geopolitical news, oil prices slumped Monday after Iran and the US signaled willingness to reach a diplomatic solution to their conflict that has disrupted global energy markets this year. Iran is prepared to negotiate a diplomatic settlement with the US, but is not ruling out military action, Tehran's foreign minister, Abbas Araghchi, told state media outlet Islamic Republic News Agency, or IRNA, Monday. US President Donald Trump has reportedly favored giving diplomacy time before considering further strikes against Iran, despite ongoing supply risks in the crucial Strait of Hormuz, Saxo Bank said in a note Monday. Front-month West Texas Intermediate crude oil fell 7.7% to $96.06 a barrel, and the global benchmark Brent crude contract dropped 8.2% to $104.17 a barrel. Henry Hub natural gas futures decreased 1% to $2.87 per 1 million BTU. In corporate news, Kosmos Energy (KOS) shares fell more than 13% after it reported Q3 results below market estimates and projected sequentially lower production for the current quarter. BP (BP) has completed the sale of its 65% stake in Castrol to Stonepeak, the company said Monday. The company will use its $6 billion in after-tax proceeds from the sale to reduce debt, BP said. BP shares were down 4.7%. GeoPark (GPRK) said Monday a 25-year production participation contract for the Bare Block in Venezuela is now effective along with the completion of the share issuance deal with Grupo Gilinski. GeoPark shares were falling nearly 4.1%. Public Service Enterprise (PEG) shares were 0.1% higher after it reported Q3 adjusted earnings of $1.15 per diluted share, compared with $1.13 a year earlier. Analysts surveyed by FactSet expected $1.19.