Shares of energy companies fell sharply alongside oil futures.
Oil dropped by more than 4% to $58.49 a barrel, amid technical positioning for a market condition known as "contango" when later-dated futures are ascribed more value than near-term contracts.
In its annual investor presentation Chevron, the second-largest U.S. oil producer, unveiled plans for a power plant that would serve an artificial-intelligence data center in the West Texas shale patch, where the energy giant already pumps natural gas.
Rival Exxon Mobil, meanwhile, is pushing into the liquefied natural gas business, which is currently booming. The Golden Pass LNG export terminal in Texas, which is owned by Exxon and QatarEnergy, is set to begin operations at the end of 2025 and will have export capacity of more than 18 million metric tons per annum.
The Trump administration is poised to unveil a plan that would allow oil drilling off the California coast, according to people familiar with the matter, a move likely to further inflame the political feud between the president and the Democratic governor of the state, Gavin Newsom.
U.S. natural gas futures settled lower, following a close at 2025 highs on Tuesday.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
November 12, 2025 17:37 ET (22:37 GMT)
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