Crude oil and OK energy stocks dropped on Monday over AI news

© Reuters. FILE PHOTO: A crude oil tanker sails in Nakhodka Bay near the port city of Nakhodka, Russia, December 4, 2022. REUTERS/Tatiana Meel//File Photo

 

 

Not only did crude oil prices drop about 2% in Monday’s trading to reach a two-week low, but Oklahoma energy stocks suffered as well, some falling 7% and 8% in trading.

What prompted the fall? News of growing interest over Chinese starup DeepSeek’s low-cost artificial intelligence model. It prompted concerns over energy demand to power data centers, reported Reuters. Oil traded lower earlier in the day on weak economic data from China and the growing concern that President Trump’s proposed tariffs might weaken energy demand.

Yahoo news reported NRG dropped more than 13%, Constellation Energy, the largest nuclear plant operator in the US, tumbled 21%, while electricity generator Vistra Corp sank by a record 28%.

West Texas Intermediate crude finished down $1.49 or 2.0% at $73.17 a barrel on the New York Mercantile Exchange. The WTi close was the lowest since Jan. 2.

Brent crude, considered the global standard, dropped $1.42 or 1.8% and closed for the day at $77.08 a barrel. It was the lowest close for Brent since Jan. 9.

Brent futures fell $1.42, or 1.8%, to settle at $77.08 a barrel, while U.S. West Texas Intermediate (WTI) crude ended $1.49, or 2.0%, lower at $73.17.

Natural gas prices took a more than 8% tumble on Monday. It closed down 33 cents or 8.19% at $3.70 per MMBtu.

Oklahoma energy stocks suffered on Monday. Big drops were recorded by Canoo at nearly 14%, Williams Cos. at 8%, Gulfport Energy at 7% and Alliance Resource Partners at more than 6%.

 

Alliance Resource Partners, L.P
27.36 USD−1.88 
Canoo Inc
0.41 USD−0.066 
Coterra Energy Inc
27.83 USD−1.19 
 Devon Energy Corp
35.33 USD−0.63 
Empire Petroleum Corp
6.01 USD−0.17 
Expand Energy Corp
101.42 USD−4.58 
Gulfport Energy Corp
176.79 USD−13.62 
Helmerich and Payne Inc
33.89 USD−0.83 
LSB Industries Inc
8.36 USD−0.33 
Mach Natural Resources LP
18.08 USD−0.090 
Mammoth Energy Services Inc
3.13 USD−0.13 
Matrix Service Co
14.30 USD−0.75 
 NGL Energy Partners LP Unit
5.23 USD−0.14 
OGE Energy Corp
42.69 USD−0.51 
ONE Gas Inc
70.64 USD+1.79 
ONEOK Inc
100.45 USD−4.08 
Ovintiv Inc
43.57 USD−1.32 
PHX Minerals Inc
3.92 USD−0.090 
SandRidge Energy Inc
11.95 USD−0.33 
Unit Corp
29.14 USD−0.37 
Vital Energy Inc
34.14 USD+0.20 
Williams Companies Inc
54.55 USD−5.02