By Steve Gelsi
Energy stocks rose along with crude prices Wednesday as a
greater-than-expected increase in weekly petroleum inventories
enforced the possibility of production cuts from OPEC.
Strong earnings reports from National Oilwell Varco (NOV) and
NiSource (NI) also stoked buying with oil-service shares leading
gains among the three major energy sector indexes.
U.S. crude oil supplies rose 7.2 million barrels in the week
ended Jan. 30, according to the Energy Information Administration.
Analysts surveyed by Platts expected a build-up of 2.9 million
barrels of oil in the past week. Gasoline stocks rose by 300,000
barrels, less than expected.
The Amex Oil Index (XOI) rose 1.4% to 955, led by a rise of 6.5%
to $39.94 from Anadarko Petroleum (APC).
The Amex Natural Gas Index (XNG) rose 2.8% to 390, with
component El Paso (EP) up more than 5% to $8.64.
The Philadelphia Oil Service Index (OSXX) rose 4.6% to 130.
Component Halliburton (HAL) rose 6% to $18.43.
Crude for March delivery gained 65 cents to $41.43 a barrel. The
Organization of the Petroleum Exporting Countries said January
production fell 3.7% to 26.23 million barrels of oil a day from
27.24 million barrels a day in December.
NiSource jumped 7% to $10.41 after it posted a higher
fourth-quarter profit, beating Wall Street expectations.
Devon Energy (DVN) fell 4.3% to $59.26 after it booked a $6.8
billion loss on the marked down value of its oil and natural gas
properties.
National Oilwell Varco rallied 8% to $27.74 after it reported a
55% jump in profit after absorbing its acquisition of Grant Prideco
last year.
Cameron International (CAM) jumped 3.2% to $21.91, regaining a
big chunk of its losses from the previous session. Analysts at
Pritchard Capital said Cameron provided full-year profit targets on
a conference call, unlike most of its peers, in a move that
"reflects well on management confidence."
-Steve Gelsi; 415-439-6400; AskNewswires@dowjones.com