Energy Stocks Gain Friday Afternoon Amid Geopolitical Tensions

Energy equities climbed on Friday afternoon, with the NYSE Energy Sector Index gaining 2.8% and the State Street Energy Select Sector SPDR ETF adding 2.5%. The Philadelphia Oil Service Sector Index led the advance, rising 5.3%, while the Dow Jones US Utilities Index slipped 0.6%.

The sector's performance tracked a sharp increase in crude oil prices driven by escalating geopolitical risks. Front-month West Texas Intermediate crude oil gained 3.5% to reach $102.90 a barrel, and the global benchmark Brent crude contract rose 2.8% to $116.30 a barrel. In contrast, Henry Hub natural gas futures fell 5.2% to $2.65 per 1 million BTU.

Reuters reported that Saudi Aramco ordered the evacuation of its headquarters in Dhahran, located on the Gulf near Bahrain, as fighting intensified with Iran-aligned Houthis. Separately, the UAE Ministry of Climate Change and Environment confirmed an oil spill was detected off the coast of Umm Al Quwain in the United Arab Emirates. The ministry did not identify the cause of the spill or the tanker involved.

Corporate results provided further support for the sector on Friday. SLB reported third-quarter results that exceeded expectations, with shares jumping past 6%. The company attributed the performance to a surge in North America revenue and momentum in its data center business, which offset weakness in its Middle East operations.

Eni shares rose nearly 4% after the company posted higher third-quarter financial results and increased its outlook for underlying oil and gas production growth in 2026. BP shares advanced 2.3% following an announcement that the company agreed to make an early payment of about $350 million to Louisiana. This payment accelerates BP's remaining obligations under the 2015 Deepwater Horizon Economic Damages Settlement.

According to Bloomberg, Logan Energy is considering selling the Canadian oil and gas firm and has engaged advisers to assess buyer interest.