Investing.com - Energy stocks struggled in midday trading as the rout in oil prices continued.
The S&P 500 Energy index lost 0.2% at 11:40 AM ET (16:40 GMT).
WTI crude oil futures fell more than 4%, putting U.S. oil prices firmly below $60.
Oil has been selling off sharply after it emerged that U.S. oil sanctions on Iran, which went into effect Nov. 4, would likely have limited effect on supply, especially with six-month waivers given to several nations.
In addition, U.S. domestic crude output is increasing and inventories are rising, leading oil bears to believe there is plenty of oil for demand.
And an OPEC forecast for lower global demand today also gave traders a reason to sell.
Dow components Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) were lower. Exxon fell about 0.5% and Chevron lost about 0.2%.
In the S&P Energy Sector Index, HollyFrontier (NYSE:HFC) led the losers, falling 2.5%.
Halliburton (NYSE:HAL) was off 2.2% and Marathon Oil (NYSE:MRO) fell 2.1%.