Shares of energy producers fell alongside oil futures as the extension of OPEC and Russia's production-cut deal failed to quell worries about oversupply of oil and gasoline.
Continue Reading Below
The Baker Hughes count of oil rigs active in the U.S. rose by two to 722 last week, a sharp increase from a year earlier.
Analysts at one brokerage said fears that a shift to electric vehicles from the internal-combustion engine would eventually wipe out the oil industry are, to some extent, misguided. "We believe the 'peak oil demand' thesis has a very large blind spot on miles traveled, leaving us constructive on US refiners and low-cost US oil producers," said analysts at brokerage Morgan Stanley, in a research note. "Our base case is for gasoline demand to fall by 0.2% compound annual growth rate through 2040, as a slightly more than doubling of emerging-market demand offsets a 60% reduction in developed-market demand over that time."
Rob Curran, email@example.com
(END) Dow Jones Newswires
May 30, 2017 17:27 ET (21:27 GMT)