ExxonMobil blocked a proposal to settle a disputed $5.2 billion environmental fine in Kazakhstan's Kashagan oil field, according to a report by Bloomberg. The company later persuaded TotalEnergies to oppose the proposal, giving the two firms enough support to prevent the settlement from moving forward. This corporate dispute occurred against a backdrop of shifting energy markets and urgent operational safety measures in the Gulf of America.
In the Gulf of America, major operators halted production and evacuated personnel to monitor Hurricane Isaias. BP said on Friday that it shut in production and evacuated all staff from its Na Kika and Thunder Horse platforms. Shell reported on Thursday that it halted production at its Mars, Ursa, Olympus, and Vito assets while tracking the hurricane. Despite these operational disruptions, BP shares fell 0.4% and Shell shares eased 0.1% in trading.
Market sentiment for energy equities was mixed late Friday afternoon. The NYSE Energy Sector Index increased 0.1%, while the State Street Energy Select Sector SPDR ETF (XLE) eased 0.2%. The Philadelphia Oil Service Sector Index rose 0.3%, and the Dow Jones US Utilities Index added 0.9%. In commodity trading, West Texas Intermediate crude oil declined 0.4% to $91.12 a barrel, and global benchmark Brent crude shed 0.4% to $103.88 a barrel. Henry Hub natural gas futures rose 1% to $3.20 per 1 million BTU.
Geopolitical developments added a layer of uncertainty to fuel prices. Al Jazeera reported that US President Donald Trump said he would soon release news concerning diesel and claimed that nearly record-high prices would soon come "tumbling" down.
In other corporate news, Shell acquired a 30% interest in Equinor's Bay du Nord offshore oil project in Canada. Equinor will keep the remaining 70% share and continue operating the project, with its shares rising 0.2%. Meanwhile, South Bow shares dropped 2% after Barclays downgraded the stock to underweight from equalweight.