Energy stocks fell sharply on Tuesday leading all decliners in a broad market sell-off.
The nation's major oil companies were the day's biggest decliners following a pair of bearish demand reports and ahead of a report on U.S. stockpiles.
The Energy Select Sector SPDR Fund (XLE - Get Report) , an exchange traded fund that tracks the Standard & Poor's 500 energy components, fell 2.8%. Crude prices ended the trading day down 3% at $44.90 per barrel.
Earlier Tuesday the International Energy Agency reported a more bearish than expected stance on the commodity. Global oil demand growth is slowing at a faster pace than the IEA anticipated, the agency said Tuesday in its September oil market report.
Due to a "more pronounced" demand slowdown in the third quarter, the IEA said Tuesday it now expects demand to increase by 1.3 million barrels per day in 2016, versus its previous estimate of a 1.4 mb/d uptick. Moreover, the agency sees momentum pulling back further to 1.2 million barrels per day in 2017, citing uncertain underlying macroeconomic conditions.
Monday's monthly statement from the Organization of Petroleum Exporting Countries, or OPEC, also weighed on the sector Tuesday. The cartel noted a decline in production, but lowered demand expectations. OPEC also noted the importance of central banks' decisions on the price of oil.
And, later today the American Petroleum Institute will weigh in with its own US crude inventory data, followed by the weekly EIA data to be released tomorrow at 10:30 am ET. The week's final data arrives Friday at 1 pm ET when Baker Hughes (BHI) releases its data on the number of new U.S. oil rigs brought online in the past week.
Energy services firms that provide equipment, technology and workers to the drilling industry also fell. TransOcean (RIG - Get Report) closed down about 5%, Diamond Offshore (DO - Get Report) retreated about 4% and and Helmerich & Payne (HP - Get Report) shares shed 4.3%.
EDITORS' NOTE: This story has been updated from its original to reflect closing prices of various energy stocks.