Energy Stocks Rise as US Treasury Finalizes Rules on Hydrogen Tax Credits
Key Ideas
- Energy stocks saw an increase late Friday with various sector indices rising, including the NYSE Energy Sector Index and the Energy Select Sector SPDR Fund.
- The US Department of the Treasury's finalization of rules for hydrogen producers seeking tax credits led to a surge in stock prices for companies like Plug Power, Constellation Energy, and Bloom Energy.
- West Texas Intermediate crude oil and global benchmark Brent also saw gains, while Henry Hub natural gas futures experienced a sharp decline.
- US natural gas stocks fell below expectations, impacting market dynamics in the energy sector.
Energy stocks experienced a positive trend on Friday afternoon as several key indices showed an upward movement. The NYSE Energy Sector Index, Energy Select Sector SPDR Fund, Philadelphia Oil Service Sector index, and Dow Jones US Utilities index all posted gains. Crude oil prices also rose, with West Texas Intermediate reaching $74.13 a barrel and Brent climbing to $76.65 a barrel. In contrast, Henry Hub natural gas futures tumbled to $3.37 per 1 million BTU. The US Department of the Treasury's release of final rules for hydrogen producers seeking tax credits had a significant impact on the market, particularly benefiting companies like Plug Power, Constellation Energy, and Bloom Energy whose shares surged in response. However, US natural gas stocks saw a decline of 116 billion cubic feet, falling short of the expected decrease of 128 billion. This news further influenced market dynamics and investor sentiment within the energy sector.