Shares of energy companies sank as oil futures settled little changed, holding ground at their highest prices in about six weeks.
Concerns eased Tuesday over the impact of Tropical Storm Nicholas on crude and natural-gas production in the Gulf of Mexico after the storm made landfall as a Category 1 hurricane on the Texas coast. The impact of Nicholas was "much less than previously anticipated as no major new refinery or oil production facility was shut off that wasn't already offline," said Manish Raj, chief financial officer at Velandera Energy Partners.
Meanwhile, natural gas prices finished at the highest price since February 2014 amid soaring global prices and bullish factors related to hurricanes Ida and Nicholas.
In corporate news, Chevron is tripling spending in its new low-carbon unit, which Chief Executive Mike Wirth said he increasingly sees as a viable business. The San Ramon, Calif., oil giant is pledging to spend $10 billion through 2028 on biofuels, hydrogen production, carbon capture and other technologies, up from a prior commitment of around $3 billion.
BP has hired the former chief executive of one of the world's largest wind power developers to run its gas and low-carbon operations, as the oil giant looks to support its push into renewable energy. The British company said Anja-Isabel Dotzenrath, the former CEO of RWE Renewables, would help lead its pivot away from fossil fuels and into low-carbon energy. She replaces longtime BP executive Dev Sanyal who, in an unexpected departure, is leaving the company to take on a new role at a privately held refining company.
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(END) Dow Jones Newswires