Oil prices retreated sharply Monday, pulling energy shares lower after the United States and Iran paused military strikes over the weekend, easing immediate concerns about disruptions to global crude supplies.
Energy producers and refiners moved lower in premarket trading alongside the drop in crude. BP (BP) lost about 3.5%, Exxon Mobil NYSE:XOM declined 3%, Chevron NYSE:CVX slipped 3%, and Shell NYSE:SHEL eased 1.8%. Among exploration companies, Diamondback Energy (FANG) fell 3.8%, while Devon Energy (DVN), Occidental Petroleum (OXY) and ConocoPhillips (COP) each traded lower.
West Texas Intermediate crude fell about 8.8% to $82.48 a barrel, while Brent crude dropped roughly 10% to $87.93. The decline followed signs of reduced tensions, although shipping through the Strait of Hormuz has yet to recover as markets await greater clarity on whether the pause will hold.
Refining stocks also weakened, with Valero Energy NYSE:VLO and Marathon Petroleum (MPC) down about 3% and Phillips 66 (PSX) off 2.8%. Market participants continue monitoring diplomatic efforts and vessel traffic through the Strait of Hormuz for signs that crude exports could normalize.