Diamondback Energy shares declined Wednesday as energy stocks faced selling pressure from retreating crude prices and investor positioning ahead of the Federal Reserve’s interest rate decision. The Energy Information Administration said U.S. crude inventories fell by 640,000 barrels for the week ended Sept. 11, a smaller drawdown than markets had expected. The result heightened concern about near-term domestic demand and weighed on Permian Basin producers. Higher interest rates also matter for Diamondback’s valuation and balance sheet following its $26 billion acquisition of Endeavor Energy Resources, completed in September 2024. Elevated borrowing costs can raise refinancing expenses, slow net debt reduction and increase the required returns for capital programs across the Midland and Delaware Basins. Benchmark 10-year Treasury yields near 5% can also increase discount rates in discounted cash flow models, pressuring valuations for capital-intensive commodity producers. Diamondback shares were down 7.8% at $195.02 at publication, according to Benzinga Pro data.