Buyers continued to nibble away at the energy sector Wednesday, pushing stocks steadily higher through the session while shrugging off mildly bearish data on U.S. fuel supplies.
At the close, the Amex Oil Index ($XOI :1,313.21, +16.74, +1.3% ) was up 1.1% at 1,286.7 points, the Amex Natural Gas Index ($XNG : 504.47, +4.34, +0.9% ) was up 1.1% at 497.2, and the Philadelphia Oil Service Index ($OSX : 242.85, +2.74, +1.1% ) was ahead 1.3% at 237.1 points, all extending the previous session's gains. Advances came despite June crude-oil futures dropping $1.13 to $63.68 a barrel after the U.S. Energy Department reported the nation's crude supplies rose 1.1 million barrels last week. The higher crude inventories were roughly in line with market expectations.
Gasoline supplies continued to fall, down for a 12th week, but declined in line with forecasts. Gasoline futures fell nearly 1% to $2.23 a gallon. See Futures Movers.
A batch of earnings reports in the oil-service sector turned in mixed results, led by a strong first quarter for offshore rig owner Transocean Inc. (RIG : 91.10, +1.45, +1.6% ) , sending the stock 3.4% higher to close at $89.21. Rowan Cos., (RDC :38.50, +0.84, +2.2% ) on the other hand, turned in first-quarter results that missed analysts' expectations, triggering a 0.8% pullback in the stock to $36.81, leaving it the only decliner in the oil service index. See full story.
Devon Energy (DVN : 76.68, +0.72, +0.9% ) shares sported a 1.6% gain to $74.26 after topping analysts' forecasts on earnings last quarter of $1.44 a share.
Devon's first-quarter profit fell 7% from a year ago, hurt mostly by lower natural gas prices and higher operating costs, but the company made strides on the production side. The stock was also got a lift from another bout of takeover speculation, this time citing Exxon Mobil. Devon's CEO said Exxon had not approached the company. See full story.
Sunoco Inc. (SUN : 77.80, +1.33, +1.7% ) , which reports first-quarter results after the closing bell, rose 2.6% to $77.70 a share. Analysts are looking for the big East Coast refiner to hand in a per-share profit of $1.40.
Joining Sunoco, refiner Valero Energy Corp. (VLO : 74.51, +1.19, +1.6% ) was up 1.3% at $72.90, while the industry heavyweights managed more modest gains, drawing some strength from positive economic data that helped send the Dow industrials (.DJI : 13,271.04, +29.66, +0.2% ) to a new all-time intraday high of 13,256 points.
Among the other movers in the oil group, overseas companies made most headway. U.S.-traded shares of Royal Dutch Shell Plc (RDSA : 72.72, +1.27, +1.8% ) , Spain's Repsol SA (REP :34.04, +0.63, +1.9% ) , and France's Total SA (TOT : 75.78, +0.33, +0.4% ) all rose between 1.7% and 1.9%.
Chevron Corp. (CVX :80.05, +0.49, +0.6% ) added 0.4% to $78.64 while Exxon Mobil Corp. (XOM :81.52, +0.84, +1.0% ) gained 0.2% to $79.82. ConocoPhillips (COP : 70.81, +0.82, +1.2% ) , the only decliner in the integrated oil group earlier in the day, rallied back to end at $69.42, up 0.3%.
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