it's below $96 right now pippa stevens joins us pippa, what is driving this big decline today? a really ugly day for oil. wti fell 8% and is just barely above its 200-day moving average of 95.35 it hasn't dipped below that level since december there area number of factors fueling this decline of course we've got the spike in covid cases in china we've also got the stronger dollar as well as recession fears. meantime, thin liquidity can lead to exacerbated price moves. traders, their net long positions in wti have fallen by nearly 30 p% in the last few wek and are now at their lowest in two years. this all comes ahead of president biden's trip to the middle east and rebecca babbin saying there isn't any risk appetite to buy this dip ahead of his trip. turning to the impact on energy stocks, we talked with the technical levels on the xle last week you can see there was a slight bounce off that level but the sector has retested that 200-day moving average matt nailey saying if it falls significantly below that level it will throw into question the uptrend the sector has been in fo

cnbc's pippa stevens joins us. sara, and recession fears are front and center with the idea any type of economic slowdown will curtail demand for oil on petroleum products there are a number of other factors weighing as well including the stronger dollar as well as an unwind of the oil as an inflation hedge trade but on the demand side, i think it's natural to look at prior downturns in prior recessions to try to gauge where demand might come in, if there is a slowdown. but experts say that kind of ignores the supply situation right now which is so tight and also the consumer is a lot stronger today than, say, in 2008 meaning we might not have that same kind of slowdown if we do get an economic downturn. it was noted the xle, which tracks the energy sector, fell below its 200-day moving average. it's only done that three other times in the past year and each was able to regain the level in a matter of days and so this time around if they can't regain the key technical level that could be a sign of concern for the e

our pippa stevens.ck with energy now with shares of liberty energy, which is the second-largest fracking company in north america rising at least a percent on expected earnings today. they are also announcing plans to put equipment to work as strong demand has boosted pricing for the services. chris wright is the chairman and ceo and he joins us now. chris, it is great to see you. >> thanks for having me, kelly. >> so how do we fix the global energy problem? >> the solution here will come slowly and gradually. but what we are seeing is a culmination of eight years of under-investment, and frankly bad policy demonizing hydrocarbon and not allowing the needed infrastructure to bring the immense amount of american gas over to europe. better to get gas from the u.s. then get it from russia. we have that gas, we can deliver that gas, but we need the infrastructure to move it. >> we also know that it is going to be a record all-time high for gas exports, until that stability caught fire and went off-line. wha

. >>> i mentioned falling oil, let's get the full details from pippa stevens with more on today's slumpkelly, big declines across the energy complex sending oil tumbling more than 8% to its lowest level since april and falling into the close. a number of factors weigh in, covid cases in china are jumping, which could hit demand. the dollar is also stronger and we've got mounting recession fears. this all ahead of president biden's meeting with saudi leaders later this weekmen opec does have room to raise production she doesn't believe they have that spare capacity. even if they did, would they be willing to raise output. today's decline is at odds with comments from key agencies, the iea saying the world has never witnessed such a major energy crisis in terms of both depth and complexity meantime, opec today released its first look at 2023 and they see a tight market so a lot of different moves here wti down more than 8% at 9950. brent crude also falling below 100 bucks currently at $99 meantime, gasoline futures down another 6%, so that is one bright spot for consumers, kelly, with gas

is still up 26% for the year, and it's only risen twice out of its last four earnings reports pippa stevense story. >> hey, kelly, a lot has changed for energy stocks in the last month as oil prices retreat on the heels of recession fears and halliburton is no exception. it hit the highest level in four years in june, and it's down more than 30% since a very sharp selloff there. now looking ahead to tomorrow's report, one thing that's really key is inflationary pressures versus pricing power and to what extent that plays through into margins, so essentially can halliburton pass along the higher costs its seeing from things like labor and raw materials. can they pass it along to their customers? and then another thing, of course, is production plans from enp companies. halliburton has less international exposure than some of its peers so the north american market is really important, and we did see the -- jump nearly 30% during the second quarter according to stifel with prices remaining volatile here, we could see that start to slow a little bit. >> yeah, all right, ari, you've been a relat

pippa stevens with the story and the standouts. ene is g-squared private wealth cio and she joins us with her picks and trades today. welcome to you both. pippa, kick things off for us. >>> energy stocks are higher today as oil and gas bounce back the sector is still down more than 20% in the last month and the group has really gotten caught up in the broad market selling. it was a standout for so long, and so some of this is to cover losses elsewhere in the market looking forward to names to watch are exxon and occidental exxon giving an upbeat outlook for second quarter earnings driven by high prices for petroleum like gas the company said refining margins set to increase by more than $5 billion. the stock is down 18% and hitting a record back in june. now turning to occidental this is a berkshire pick and they've been adding to the position. the stock is the top performer within energy more than doubling this year. and to put that in context, valero is the second top performer up a measly 40% in comparison so it could be a victim

pippa stevens has more >> and first up, you know the climate crisis was a huge part of biden's presidential campaign but many of those goals have been sidelined and we can see that reflected in renewalable energy stocks. take a look at this chart. it tracks the broad range of clean energy names and you see the momentum lieu when biden was elected in november 2020 and all the way to january 2021 it has been downhill since then. and the administration has been unable to move things forward, leading to as one person told me deep pessimism on the policy front. but on the flip side, fossil fuel prices and a grid that can't keep up and more weather events mary powell telling me that demand for solar systems is off the charts but still stocks have been hammered more than 70% below its 52 week high >> and the bigger news seems to be centsenator manchin saying ls not move forward with this significant piece. >> and that was there, the biden administration's hallmark slenl legislation, more than $300 billion in the bbb for climate crisis goals and so biden could declare a nags at emergency, but we've

. >> pippa stevens joins us.e record profits and higher buybacks will buy them political good will. the white house has accused them of prioritizing profits above all else what did we learn here >> during this record quarter for both exxon and chevron, both companies were quick to note that they are in creasing output and they are trying to alleviate some of the burden on consumers of these sky high energy prices. mike worth at chevron said that permian production is up 15% compared to last year. darren woods at exxon said they're bringing in additional 250,000 barrels per day of refining capacity online by the first quarter of 2023. which would be the largest addition in the u.s. in more than a decade. and look, these companies know that they are under fire for these record profits and typically when companies do report a record quarter, it is the first thing you see. but at the top of both of the earnings statements they did not note these were record earnings so they are well aware they are under attack by the

pippa, thank you for now our pippa steven after the break our interview with transportation secretaryttigieg following the s reellation of thousandmo flights this holiday weekend we'll be right back. stay with us on "power lunch." >> announcer: the bond report is brought to you by pimco, a global leader in active fixed income a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect. >>> all right, what we're showing you right now are some of the big gainers on the session so far in a down tape. i would point out as kelly has numerous times over the last hour plus or so right now, we were down significantly at the lows of the session, and we are now down only 250 points for the dow. if you look at the trade so far today, you look at roblox on the kind of virtual reality metaverse game development platform side of things up 13%, crocs on a weak kind of basis, you've kind of got a 10.5% gain, etsy up 10% as well, norwegian cruise lines probably more on that economically sensitive cyclical side of things. big moves in those na

. >>> our pippa stevens has the story for you. >> hey, david.cross the board, which is a major contributor to the decades-high inflation we're seeing fuel switching is not an option since all are elevated decades of uninterrupted and affordable energy have come to an end this year, worldwide spending on energy consumption set to top $10 trillion for the first time on a record according to the iea. that's equivalent to 10% of gdp. russia's war is the latest catalyst and prices were rising ahead of the invasion thanks to years of underinvestment not enough was spent to meet existing fossil fuel demand or to move the world to renewables. ultimately securing energy supplies is a multi-decade challenge with barclays saying $150 trillion would be required. meantime, clean energy spending set to hit a record this year. prices remain high and volatile the better the case for renewables looking forward, some say there needs to be an all of the poof approach companies are spending around renewables including clearway energy and aes leslie, back to you. >>