Oil stocks sold off further Monday at midday as prices for natural gas lost more than 8% and crude futures fell more than 3%.
Raymond James said it was revising its 2006 natural-gas price forecasts lower because last month was the warmest January on record.
"Due to reduced winter gas demand, we are lowering our 2006 gas forecast given that lofty winter-ending storage levels will likely keep gas prices relatively depressed over the next six to nine months," the broker said in a note to clients.
The firm said it's "modestly cautious" on the oil sector for the next few months.
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